The U.S. Federal Reserve isn’t hiking the rate of interest in the month of September after the experts noted that the jobs related report released in the month of August missed the expectations of the economists. It must be noted that the average work week dropped by 0.1 % to reach 34.3 hours in the month of August. During a CNBC show, Art Cashin, UBS, director of floor operations stated that there won’t be any hike in the rate of interest in the month of September primarily because the average work week level dropped. According to him, this was equal to losing more than two lakh fifty thousand jobs that wipes away the one lakh fifty one thousand we have.
On the other hand, William Lee of Citigroup stated that his organization never assumed that the Federal Reserve would hike the rate of interest in the month of September. During the CNBC show he too revealed that Fed isn’t ready for announcing the hike yet. He further clarified that that his organization firmly believes in the fact that the United States central bank is likely to hike the federal rates by the month of December as non-voting regional presidents of the Fed did not have much power to introduce a hike in September.