ALLOCATION PERSPECTIVE / USA : an impression of capacity under-utilization...
Market analysis by Franck Nicolas, Head of Investment and clients solutions.
" Those who were hoping for a shift in tone from the Federal Reserve regarding an imminent rate hike, encouraged by increasing signs of a recovery in the US, will be disappointed. The Fed has reiterated its concerns over the dynamics of the economy.
Two main factors have to be taken into consideration. Firstly, the employment market, which although improving, remains listless. At 6.1%, the unemployment rate effectively remains above the level of full employment, which is considered to be between 5.2% and 5.5%."
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