CapEcon: The Fed Should Hike Interest Rates In September

Get ready for a September rate hike; that seems to be the takeaway from Capital Economics’ 20 July Fed Watch research note. The report, penned by Capital Economics’ analyst Paul Ashworth, presents a view that runs contrary to the consensus, although the observation is based on improving economic data, a pickup in activity and employment both of which show that the US’s economic recovery has regained momentum. ECB blames you for negative interest rates October fed funds futures imply an 18% chance of a rate hike in September, a view that is based on the world’s deteriorating economic situation and concern…