Nick Batsford, CEO of Tip TV, opened the Tip TV Finance Show alongside Zak Mir, technical analyst for ShareProphets.com, and James Hughes, Market Commentator for eToro, to discuss the timing and the impact of a federal reserve interest rate hike.
Fed rate hike may harm emerging markets
Mir outlined and noted that if the Fed do raise rates this week, it may have a devastating effect on emerging markets. Nevertheless, Batsford commented that emerging market central banks have been encouraging the Fed to raise rates, meanwhile, the World Bank and the IMF are against it. Mir replied that a rate hike may harm emerging markets, however, no rate hike may be a sign that the Fed don’t think the US economy is strong enough. To conclude the segment, Mir highlighted that people are so confident one way or the other on a rate hike, that there is no chance that the result on Thursday will end well.
Timing of rate hike still debatable
Batsford outlined that we remain unclear on a US rate hike which may follow the FOMC meeting on Thursday. He continued that the US haven’t seen an interest rate hike since June 2006, and he questioned whether another 3 months really matters. Hughes noted that there is a 28% likelihood for a rate hike on Thursday, with a 60% chance of December. He added that the world is all focused on the Fed, and warns that you should watch Europe and the 20th of September for Greece, plus UK and China data.