After the fallout from Monday’s Chinese stock market selloff, Bill Blain – Strategist at Mint Partners – joined Zak Mir and Mike Ingram in the studio to discuss what implications this has for an impending Federal Reserve interest rate hike.
“The sun always rises the next day”
After the events of Monday, the Federal Reserve are looking increasingly unlikely to begin raising interest rates in the US next month. However Bill Blain believes it still may occur later this year. Reported macro data in the US is still fairly positive, and lower fuel prices is seeing a rise in consumer spending. Blain believes a move to return rates to between 1.5-2% level to be a courageous one, and perhaps one that will encourage investment to return to the markets.