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Tuesday, 30 August 2016

US Fed could hike rates three times in the coming 12 months -EFG’s Simon Kitchen

We may be seeing up to three US Federal Reserve rate hikes over the coming 12 months, EFG Hermes Research chief strategist Simon Kitchen told Bloomberg TV (runtime 06:29). Talk of rates being lowered because of Brexit or the global economy is now “off the table,” he added. “The direction is pretty clear, it’s time for the Fed to start raising rates,” he says. The US economic recovery continues, but the Fed needs to have firepower for when the economy slows down again as a means to get ahead of the growth curve, said Kitchen. When people feel the Fed is going to hold, a lot of flow goes to emerging market funds and benchmark markets including the UAE and Qatar, he added. “There may be an equalization in flow between the UAE and Qatar, and Saudi Arabia,” he said.

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