Foreign investors pulled $26.3B from EM stocks and bonds in September, the first monthly outflow since June, as the Warsh Fed hiked and drove Treasury yields and the dollar higher, the IIF said. Korea

What happened: Foreign investors pulled $26.3 billion from emerging markets in September after the Fed, led by Kevin Warsh, raised interest rates for the first time since 2023 and signalled inflation remained a concern. Key numbers: $26.3 billion pulled from emerging markets in September. Why it matters: The FOMC decision sent US Treasury yields sharply higher and strengthened the dollar, pushing investors away from riskier assets. The report said a hawkish Warsh Fed projecting further hikes raises the hurdle for EM carry into the fourth quarter.

Foreign investors pulled $26.3 billion from emerging markets as hawkish Fed raised Treasury yields.

Foreign investors pulled $26.3 billion from emerging markets as hawkish Fed raised Treasury yields. — impact context not separately stored; see What changed.