Economic focus November 2015: The start of the interest rate tightening cycle?
The US Federal Reserve is expected to hike interest rates in mid-December, the first rise since 2006. The US economy looks strong enough to withstand a modest increase in borrowing costs, particularly given the recent performance of the labour market. However, other major economies are not likely to tighten monetary policy in 2016. This will support a strong US dollar, with negative implications for US trade and corporate profitability.