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

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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The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.