With Fed rate hike back in focus, Senior market commentator, David Buik, joined Zak Mir in the Tip TV studio to discuss the current prospects of an Autumn interest rate hike from the Federal Reserve, and what direction China look to be heading in now.
China clueless?
Following failed attempts to prop up their equity bubble, the data reports out of China are looking increasingly less optimistic. The Chinese authorities have begun arresting people that they consider to be detrimental to their markets, which doesn’t address the real problem, and will serve to create more problems further down the line.
Call for a pragmatic approach from the Fed
Whether or not the interest rates remain at their current level, there are serious ramifications that affect the rest of the world as much as they affect the US. David Buik believes that the Fed need to be sensible and pragmatic when making any decisions, as a rate hike now could risk damaging emerging markets.