The Globe and Mail reports in its Wednesday, Oct. 21, edition that U.S. debt dynamics are deteriorating and the Federal Reserve has started hiking interest rates, yet emerging markets appear under no pressure to follow suit. A Reuters dispatch to The Globe reports that when the Fed tightens policy, emerging economies often feel pressured to raise rates too, even if their own economies don't need it, due to currency and debt concerns. This has led to the notion that the Fed acts as the world's central banker. Resilient economic growth in emerging economies, along with strong fiscal fundamentals and high interest rates, is giving EM central banks some flexibility. This could allow them to start cutting rates next year or at least not follow the Fed closely as it tightens. Many emerging countries are improved their economic fundamentals, but concerns about fiscal trajectories in the U.S., Japan, euro zone and U.K. have led to the highest yields in decades across the globe. Investors are positioning accordingly. A JPMorgan survey of investors at the International Monetary Fund/World Bank meetings in Bangkok last week showed that 33 per cent favour EM stocks, compared with 26 per cent who prefer developed-market equities.