CLSA's Christopher Wood says US Fed unlikely to raise rates in 2016

Christopher Wood, managing director and equity strategist at CLSA in his widely followed newsletter Greed and Fear has said that he does not expect the US Federal Reserve to raise rates either this month or this year.

The US Fed will hold its next monetary policy meeting on September 20 and 21.

If the Fed does raise rates this month, Greed and Fear will take it as a signal that Vice Chairman Stanley Fischer is now running the Fed, said Wood. However, assuming Chairwoman Yellen is still the boss, the odds still favour no rate hike, he said.
If indeed the US central bank goes ahead and raise rates before the end of this year just to show it has done something in 2016, it will be only a short time before it is forced to reverse.

"This is why any back up in Treasury bond yields will be temporary, providing another opportunity to buy interest rate sensitive stocks in Asia, emerging market debt and of course gold and gold mining stocks," he noted.