Where could rates end up in the US?

PM Capital

PM Capital

It has been nearly a decade since the US market has seen and interest rate rise, so what does a 'normal' setting look like? Jarod Dawson, Director at PM Capital, says investors should be cognisant of the level of stimulus that has been injected into the US economy and that interest rates a few percentage points higher than current settings should not be discounted. "People have got used to that idea that rates are close to zero. So when they think about where they could go to…there is a leaning towards a mild increase in rates but in reality we are a long way from what the longer term history will tell you is normal.” With the substantial stimulus that has been injected into the U.S. Dawson believes there is a risk that the economy starts to perform above expectations and ultimately see rates also rise by more than the market is expecting.


We aim to build long term wealth together with our co-investors by finding and exploiting investment anomalies around the world, using a focused, patient and considered approach to finding simple investment ideas.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.