UBS economists said they do “not believe a measured tightening cycle will derail the U.S. economy or equity rally. Investors should maintain diversified equity exposure and use the rise in yields to add selectively to quality bonds, while remaining cautious on the longest maturities and lower-quality credit.’’

By Howard Schneider GREER, South Carolina, Nov 9 (Reuters) - The US central bank should move its monetary policy "with care" as it maps a response to inflation that remains its greatest risk, Richmond Federal Reserve President Tom Barkin said on Monday,