Markets doubt if US Rate hike schedule could remain intact

Global markets have been pretty volatile last week, all markets without exception are heading towards heavy correction mode, whereas European markets are facing a lot of uncertainty waiting for UK Parliament to rectify the Brexit deal, while Italian Government not moving an inch on its stand on deficit budget.

A view of the US Federal Reserve in Washington, DC. Getty Images Source: Getty Images

This week is regarded as an economic data free week. It is not likely to give markets any hint of direction. But US Federal Reserve Chairman Jerome Powell will meet the Press this Wednesday, and ECB President Draghi the next.

On Friday, all eyes will fall on President Trump and President Xi meeting in Buenos Aires, markets will closely monitor every tiny move by both leaders to see if the trade war between them will come to a happy ending, or whether markets will head towards un-chartered water where economic pain and misery can only be expected.

Last Thursday was US Thanksgiving Day, it was a big day in US culture. It also marked the beginning of a festive season in US market. Considering US stock markets are heading towards correction mode and  trading volume will be lower, it begs the question whether US Federal Reserve can keep its rate hike schedule as it has been saying.  

Independent Economic analyst and strategist, Dr Chan, will try to answer this question.