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Investors liquidated equity funds at the fastest rate in 15 years in the week to Dec. 18, driven by caution and profit-taking in anticipation of a hawkish outcome from the U.S. Federal Reserve's policy meeting after a recent market rally. According to LSEG Lipper data, investors divested a net $37.22 billion worth of global equity funds in the week, the largest amount for a single week since September 2009. The Fed cut rates as expected on Wednesday and signaled fewer rate cuts and projected higher inflation for next year, prompting a sell-off in global equities after Chair Jerome Powell emphasized the need for caution.

Investors pulled a net $50.2 billion from U.S. equity funds in the week ending Dec. 18, according to LSEG Lipper data, the biggest net outflow since Sept. as they cashed in profits from a market rally ahead of the Fed policy decision. The Fed cut rates as expected on Wednesday but projected fewer-than-expected interest rate cuts and higher inflation next year, while Chair Jerome Powell explicitly referred a need for caution, prompting a sell-off in equity markets.

The smooth economy that Donald Trump was poised to inherit suddenly looks a bit rockier — with critics saying the president-elect is contributing to the uncertainty. The Federal Reserve now sees inflation as staying stubbornly elevated as it has become cautious about further interest rate cuts planned for next year. On Wednesday, Trump blew up a bipartisan budget deal, which means the government could shut down after midnight Saturday.

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Federal Reserve chair Jerome Powell said he was uncertain as to how Trump’s proposed policies would impact the economy.

The expected pickup could prod the Bank of Japan, which decided to keep interest rates unchanged at 0.25% on Thursday, to raise borrowing costs in the new year. The core consumer price index (CPI) in Tokyo, a leading indicator of nationwide price trends, was expected to have sped up to 2.5% year-on-year in December from 2.2% in November, the median forecast of 17 economists showed. "With the end of the subsidies for electricity and city gas provided by the government, energy prices are expected to rise, pushing up the core CPI significantly," said analysts at SMBC Nikko Securities.