| Videos | Channels | Search |
Jakobsen: Why I've changed my mind on a US rate rise
Saxo's Chief Economist, Steen Jakobsen says he's changed his mind on a US rate rise and does now believe we'll see the Fed move in June. He was commenting ahead of the nonfarm payroll figures that come out later on Friday. The FOMC's policies towards employment have been successful he says but their actions have been like a 'heat seeking missile' and a rise will be merely cosmetic as they want to be seen to be exiting the recent loose monetary policy they've been following.
More concerning to Steen is the Fed's second target, inflation which is way below the 2 percent target. The collapse in the oil price and the subsequent decline in capital expenditure will be a net drag on the US economy and the pent-up investments everyone's been expecting to be released is not going to happen, he says.
02:56 minutes
Tags: america, american, business, capex, capital, cash, cash pile, central banks, ceo, content, corporate profits, crude, crude price, dollar, dollar rise, economics, economy, employment, energy, euro crisis, falling oil, fed, fed rates, fed tapering, federal, federal reserve, finance, fixed income, fomc, greece, greek crisis, inflation, investments, jakobsen, jobs, macro, monetary policy, news, news content, nfp, non farm payrolls, nonfarm, nonfarmpayrolls, nonfarms, oil, oil capex, oil capital expenditure, oil price, owen thomas, pile, profits, rate, rate rise, reserve, reserves, rising dollar, saxo, saxo bank, saxo tv, steen, tapering, tradingfloor.com, treasuries, ukraine, unemployment, united states, us, us economy, us inflation, us jobless, us jobs, us rate rise, us rates, usa, usd, usd rise, video, video content, volatility, yiels