US economy not reached 'escape velocity' - yet

Showing signs of strength

The global economy has been in protracted convalescence, and although the US has been showing some strength, relatively speaking, it has not reached the much-hoped for 'escape-velocity', writes Martin Currie's Tom Walker.

Markets remain fixated on the Federal Reserve, whose language has changed subtly over the past few months. The Federal Open Market Committee now has to factor in the uncertainty wrought by the UK's decision to seek a divorce from the EU, which sent treasury yields lower and pushed an already strong dollar higher against the sterling and euro. Not to forget the US presidential election, the two contenders for which have markedly differing levels of predictability policy-wise. Granted, the Fed's mandate is price stability and maximum employment, and not second guessing election outcomes, b...