Thesis AM's Paterson: Chances of US rate hike before year-end now higher

Key data stronger, but markets unconvinced

Anna Fedorova
clock • 2 min read

The US Federal Reserve is keeping the door open for an interest rate increase later this year despite the uncertainty caused by the presidential election, according to Thesis Asset Management's Ryan Paterson.

Paterson, a research analyst at Thesis, points to data showing an increase in domestic consumer spending and expansion in both the manufacturing and services segments of the economy, despite the August Empire State manufacturing survey showing a soft spot. "Key employment indicators continue to show the labour market is moving in the right direction," Paterson said. "After a dismal May report, this news lifted the US stockmarket which continues to post impressive gains, reaching a new all-time high." However, with the US presidential election on the horizon, Paterson believes we...

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