With the US economy on the mend, the focus will likely soon shift to when the Fed will start to raise interest rates. This could cause some volatility in shares.
- However, a Fed rate hike is probably still a year away at this stage and history tells us that it’s only when rates reach onerous levels that they become a real threat to share markets and ultimately economic growth.
- Steady progress towards eventual rate hikes in the US will further relieve pressure on the $A over time.
Please click here to read more: the US economy, the Fed and interest rates