Market reporter, Michael Hunter, joined Zak Mir and Charlie Gibson on Tip TV to talk about the market shift following yesterday’s news that the Federal Reserve will not raise interest rates in 2015.
Fed won’t want to spoil the festivities.
Hunter believes that the Federal Reserve are unlikely to make a move on interest rates now until 2016, as the US edges towards Thanksgiving and then Christmas. He also believes that, despite the US not being quite ready for a hike, the dovish members of the FOMC are in charge as the minutes in a few weeks will likely reveal.
Would life be easier if the Bank of England took the lead?
Charlie Gibson raises the question if the Fed would be happier to see the BoE move first. Hunter believes that’s certainly true, but with the UK’s exposure to the Eurozone and data not quite up to scratch, it’s an unlikely scenario. Mark Carney will be more comfortable taking the back seat on interest rates until the Fed have led the way.