The US Federal Reserve will likely raise rates in October or December "as long as data continue to be reasonably strong," says Ken Taubes, a chief investment officer for Singapore-based Pioneer Investments, which manages more than US$245 billion ($342 billion) in assets.
“The continued strength of the U.S. economy and the US consumer, which account for 70% of US gross domestic product, should allow the Fed to raise rates in 2015," Taubes writes in a report.
The declining unemployment rate, an increase in average hourly earnings, strong retail sales and rising consumer spending are all signs pointing to a rate increase rate this year.
Still, there are some risks on the back of a stronger US economy.
“We remain concerned that short yields are most vulnerable to a sell-off if US economic growth continues to improve, as they hold little to no value,” he says.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
“The continued strength of the U.S. economy and the US consumer, which account for 70% of US gross domestic product, should allow the Fed to raise rates in 2015," Taubes writes in a report.
The declining unemployment rate, an increase in average hourly earnings, strong retail sales and rising consumer spending are all signs pointing to a rate increase rate this year.
Still, there are some risks on the back of a stronger US economy.
“We remain concerned that short yields are most vulnerable to a sell-off if US economic growth continues to improve, as they hold little to no value,” he says.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment