Simon Smith, Chief Economist for FX Pro, joined Zak Mir and Bill Hubard on the Tip TV Finance Show to discuss effects of a US rate hike on the USD, and whether the Fed will move at all.
Key Points:
Difference between the Fed and the BoE has extended to 8 months between the US and the UK hiking interest rates
Forward guidance doesn’t work in our current economy, and just increases uncertainty
A Fed interest rate hike is unlikely to lead to another USD multi-figure rally like we saw earlier in 2015
Despite this Smith maintained the view that there will be no Federal Reserve interest hike in December
