Nifty futures tips : Robust US 2nd-Q growth backs case for Fed hike 26 Sep, 2015

Nifty futures tips - The US economy extended even more than previously assumed in the 2nd-quarter on stronger consumer spending & construction, backing the case for an interest rate hike before the end of this year regardless of data sounding a note of caution for September.

The Commerce Department said on Friday gross native product rose at a 3.9 per-cent annual pace in the April-June quarter, up from the 3.7 per-cent pace reported previous month. The data supports the case that the US economy may be gaining enough strength to withstand an increase in benchmark interest rates from record low levels regardless of growing concerns about the global economy. Still, many economists are expecting a cooler pace of growth in the third quarter, a view strengthened by separate data showing slower growth in services & a drop in consumer sentiment in September.
 

The US Federal Reserve previous week held off on hiking rates, but The Federal Chair Janet Yellen kept the door open to an increase current year in a speech on Thursday this week, as long as inflation remains stable and growth is strong enough to boost employment.

 

 

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