strategist: The Fed's interest rate increase in July is unlikely

Investors are increasingly concerned that the Fed’s next policy decision could be an increase of 25 basis points, probably as early as this month, but Fed Hermes’ chief market strategist, Phil Orlando, has stated that this is unlikely to happen. “We do not share this view, and the Fed is expected to ignore what should be a temporary energy supply shock and maintain interest rates,” Orlando says. Last week ' s disappointing United States labour market data prompted the market to postpone the expectation of an eventual interest rate hike until later this year. Data from the London Stock Exchange Group show a 22 per cent probability of a currency market price increase of 25 basis points in July. Kim Xian