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No burning reason for Fed to hike rate in December: Pros

Manish Singh, Chief Strategist & Head of Investments, Crossbridge Capital LLP says inflation and financial condition are two key parameters that Fed is watching closely.

The US Federal Reserve, in an unscheduled meeting today, is expected to discuss the possibility of rate hike in its scheduled meeting on December 16.

Manish Singh, Chief Strategist & Head of Investments, Crossbridge Capital LLP says that there is “no burning reason” for Fed to hike rate at present and that the meeting today will not be of much consequence. The two key parameters that Fed looks at are inflation and financial conditions, he adds.

Agreeing to the above sentiment, Dharmesh Kant, Strategist at India Nivesh Securities says that Fed might not raise in December.

On the current market situation, Kant says that the market has corrected and going forward, certain positives will drive the market higher.

Speaking with CNBC-TV18, Kant says positives like base affect, government initiatives and the upcoming Parliament Session will help lift market sentiments.

On commodities, Singh says a strong dollar will be a negative for the unstable commodities. Singh, however, is bullish on equities. Kant doesn’t have a long-term view on metals, but is bullish on sectors like banking, financials, cement and infrastructure.

Transcript to follow.

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