Currency Note US Dollar

Is the US on track for an interest rate hike?

By Ricky Bean September 29th, 2015

News that personal spending in the US has increased slightly was released on Monday, despite news that personal income had dropped slightly. While the former should reflect in upcoming retail sales figures, the implication is that consumers are not saving, a point which the US Federal Reserve will need to take into account when considering a potential US interest rate hike.

There were multiple US Federal Reserve members who gave speeches on Monday, but the highlight was by New York Federal Reserve Bank President William Dudley, who said that they expect rates to rise later this year. The US dollar strengthened following this comment.

There is very little data of significance due today, with consumer confidence expected to show a slight decline. Attention will turn to any comments made by US Federal Reserve members following Dudley’s comments yesterday, with various banks also raising their expectations on US growth rates for the third quarter of 2015.