Investment Clock insights

Despite US GDP revisions the Fed has already made up its mind


Ian Kernohan 

26 May 2016

US GDP growth for the first quarter of the year was revised up to 1.2% on an annualised basis, which despite the revision is still very soft growth.  
As first quarter GDP estimates in the US are often weak, the US Federal Reserve (Fed) have already dismissed this data, instead placing more emphasis on the labour market figures, which have strengthened in recent months.  
Off the back of this strength, another hike in US interest rates next month now seems a certainty.

US GDP growth for the first quarter of the year was revised up to 1.2% on an annualised basis, which despite the revision is still very soft growth.

As first quarter GDP estimates in the US are often weak, the US Federal Reserve (Fed) have already dismissed this data, instead placing more emphasis on the labour market figures, which have strengthened in recent months.  

Off the back of this strength, another hike in US interest rates next month now seems a certainty.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.