Investment Clock insights

Comment on the minutes of the latest US Federal Reserve meeting

Ian Kernohan

17 February 2016

The minutes suggest that many on the Federal Open Market Committee (FOMC) share Yellen's view that recent market turbulence adds to downside risks for the US economy. Since the last Fed meeting, markets have stabilised to some extent, however we still think that a rate hike in March is unlikely.

We do not share the view expressed by some commentators in the market that a falling oil price has driven the US economy into recession, via the impact on the shale sector. On the contrary, cheaper energy should act as a major support for US growth.

The value of your investment and the income from it is not guaranteed and can fall as well as rise. This article is for professional customers only. The views expressed are the author’s own and do not constitute investment advice.