The Fed’s wavering over addressing the matter of its announced rate hike has badly affected the markets, increasing their volatility. It should act now, curbing any further speculation, and disregard recent calls from the IMF and the World Bank to further delay this move.
And what if there is no lift-off in September?
US consumer confidence surged to 101.5 in August thanks to the positive evolution of the labour market.
There has been a severe downward correction in global expectations in August.
LONDON | UBS | Lower oil prices are evaluated as essentially “a wash” for the US economy.
FOMC members need more evidence that inflation is moving toward their goal and the improvement in the labour market is sufficient and sustainable.
UBS analysts explain some key aspects of Fed’s challenging task starting in September.
An upcoming Fed interest rate hike now seems to be one of markets’ main focal points and concerns.
The US economy is gaining momentum in the second quarter with an estimated 2.3% growth, supported by consumption and construction investment.
LONDON | Barclays | The US dollar strengthened after the FOMC left the door open for a September move, although it did not provide any strong signal for the timing of the first hike.