Fed optimism does little to inspire fund managers

Comments from the US Federal Open Market Committee (FOCM) that the economy is likely to expand have ...

Comments from the US Federal Open Market Committee (FOCM) that the economy is likely to expand have provoked a sceptical response from Isis economist Steven Andrew. As widely anticipated, the US Federal Reserve raised interest rates by 0.25% to 1.50% at its August policy meeting. The FOMC, which includes regional as well as national banking figures, backed Federal Reserve chairman Alan Greenspan's views that the US economy is going through a slow period before seeing a resurgence in growth in the second half of the year. Andrew says: "We disagree. While we entirely expect a near-term bou...