Where could rates end up in the US?

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.