Jakobsen: Why the Fed must raise rates before it’s too late
Saxo Bank’s Chief Economist, Steen Jakobsen, says that the recent sell-off in the market has scared investors away. He says volatility remains high as people await the Federal Reserve’s decision on what to do about a rate rise.
Jakobsen believes that there will be a hike next week. He warns that if it doesn’t happen this month, it could become too late to act.
But there have been warnings that a rise will hurt emerging markets. Steen says the opposite is true and blames the status quo for poor EM performances. He says this has led to a strong US dollar and increasing uncertainty in the markets. He explains why the USD needs to weaken and why that will begin only when the FOMC acts.
