Friday 8 January 2016

The US Fed's move in 2016 prediction

The US Fed is about to announce their job reports and forecasts about the US economy as well as the global economy. I think that the US Fed will face a similar situation as it faced in 2015 September. Last September, the US economy was performing well in terms of job increases; however, meanwhile, the Chinese stock markets were sliding and the global economy was affected by the worries over EMs. The same is taking place currently. The Chinese stock market is sliding and the world asset markets are affected as well. Many companies and institutions lower their expectations of 2016 revenues by taking the Chinese economy effect into account. All these will be added up and affect the US economy finally. Therefore, I think that the US economy will not perform as well as it did in 2015, so the US Fed may wait for a longer time to raise its rates even it might not choose to raise its rates by the end of 2016.

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