Fed Rate Rise Would Boost Investment And Thereby Equities
Tip TV | Sep 24, 2015 13:39
John Eade, President of Argus Research, joined Nick Batsford on the Tip TV Finance Show to provide an overview on the US economy, including views on the Federal Reserve, Q3 performance and growth across different sectors.
Eade outlined that the rest of the 3rd quarter in the US is going to be crazy, with it being one of the worst for many years, and he believed we will see more selling before the start of Q4.
h3 Time for Fed to step forward/h3Eade believed it is time for the Fed to boost interest rates in the US, as further holding of the historic low rates is causing greater uncertainty in the markets. He insisted that a 25 basis point hike will not have a drastic effect on the US economy, and then the uncertainty surrounding when the Federal Reserve hike is coming will be removed.
h3 Good solid growth in the US/h3Close to 3% GDP is the verdict from Eade over the US GDP release on Friday, with him concluding that this is good, solid growth. He noted that the industrial sector and oil patch have been effected by lower oil prices having been hedged higher earlier in the year. However, the effect this would have on the US economy will be offset by low unemployment and the consumer sector which is saving money at the pump. Eade added that the healthcare and technology sectors have been doing well in recent months.
On the Volkswagen (XETRA:VOWG) emission scandal, Eade compared it to Toyota, and summarised that it will take years for VW to recover as it is hard to regain a reputation for quality.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.