US interest rate rise unlikely
Peter Cameron (pictured), Associate Fund Manager, EdenTree Investment Management, on why the Fed won’t hike interest rates…
The data out of the US so far this month indicates the US economy is not immune to what’s been happening to the rest of the world.
Yesterday’s ISM Manufacturing index missed expectations and fell sharply from the previous month; indeed the reading of 50.2 is barely in expansionary territory. And today we’ve had weak non-farm payrolls and flat-lining wage growth. In this environment, and with ongoing concerns around China’s slowdown, it’s hard to see any reason why the Fed would consider hiking rates in Q4.