Watch/Listen

60 seconds with Keith Wade on the economic outlook for the US

Keith Wade gives his view on the outlook for the US economy ahead of the release of the retail sales and consumer confidence data.

12/02/2015

Recent robust US economic data has heightened the prospect of the Federal Reserve raising interest rates by mid-2015. The strength of the recovery in the jobs market has begun to add some inflationary pressures to the economy, which have offset the impact of lower energy prices. But while we put the probability of a rate rise in the US in June at close to 60%, the market is pricing in just a 25% chance.

In this 60 second video, Schroders economist Keith Wade gives his broad overview of the US economy: “The US has reached take-off velocity and is on a self-sustaining path. We are seeing jobs increase, we are seeing household incomes rise and that is supporting consumer spending, so we do believe the US is set fair for 2015.”

If that scenario continues to play out then the odds of a rate hike in the US by mid-2015 could shorten further. So investors will keep a close eye on upcoming economic data out of the US including; retail sales figures out on Thursday and consumer confidence numbers due for release on Friday.

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Limited 12 Moorgate, London, EC2R 6DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored. 

Contact Cazenove Charities

Achieving your charity's investment objectives takes time and thought. To find out how we can help you please contact:

Giles Neville

Giles Neville

Head of Charities giles.neville@cazenovecapital.com
John Clifton

John Clifton

Business Development Manager john.clifton@cazenovecapital.com