Recent Fed Interest Rate Hike Is “Out Of Sync”: Citi

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Mani
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The recent Fed interest rate hike is "out of sync" as the profit and leverage cycle are far more advanced than they would normally be at the time of the first Fed hike, notes Citi. Matt King and Joseph M Faith said in their Dec. 18 research report titled “Fed up with low rates” that although corporate leverage is at non-recessionary highs, incremental interest should not really be a concern. Interest rate hike - Global manufacturing looks like a recession King and Faith argue that typically interest rate increases start when profits are growing faster than debt and when companies are still deleveraging, which coincides...

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Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports