Why the US Fed may have to hike rates this year

Market consensus now maintains that the US Federal Reserve will most likely not hike interest rates as this week's meeting or even at the next one in December. Saxo Group’s Chief Economist Steen Jakobsen says, however, that there are reasons to believe the Fed will still hike this year. According to Mr. Jakobsen, the consensus of a “no hike” scenario is based on “internal dissent, negative ideal Fed Funds targets, or ‘dots’, plus a general acceptance that the Fed board is divided down its middle”. Consensus, in fact, now holds that we will be well into 2016 before the Fed makes its move. In spite of this, Saxo Chief Economist says the “external factors” that refrained the US Fed from hiking have eased since last meeting in September, thanks in part to the other major central banks, who have been easing their monetary policy. Additionally, there’s an element of credibility that the US Fed will need to protect. To read more visit: (VIEW LINK)