CNBC Asia Wants to Know: What Could Disrupt a December Rate Hike?

Author: USGI
Date Posted: November 10, 2015 Read time: 1 min

With the release of a strong U.S. jobs report on Friday, the Federal Reserve has hinted at an interest rate hike before year end. Frank Holmes tells CNBC Asia he isn’t sure a December rate hike will happen, noting the fact that real interest rates in America are already the highest in the world right now.

With the release of a strong U.S. jobs report on Friday, the Federal Reserve has hinted at an interest rate hike before year end. Frank Holmes tells CNBC Asia he isn’t sure a December rate hike will happen, noting the fact that real interest rates in America are already the highest in the world right now. He comments that everyone is caught up with what nominal rates are doing. Frank says those numbers are just “the tip of the iceberg,” when in fact underneath the water real rates tell a completely different story.

Looking closer at last week’s jobs report, Frank points out the age group that has witnessed huge growth this year – age 55 years and older. He says that this statistic should also be a consideration when examining the Fed’s next move.

 

Watch the full interview.

 

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