M&G's Woolnough questions Fed's hesitation on rate rise

Laura Dew
clock

Richard Woolnough, manager of the £24bn M&G Optimal Income fund, says he is at a loss to understand why the US is holding off on raising interest rates.

Speaking at the Fidelity FundsNetwork investment forum last week, Woolnough (pictured) was asked if he expects the US Federal Reserve to raise rates in December. The manager said positive economic data indicates they should be raised sooner than that.  "They should start raising rates earlier than December," he said. "I do not understand why they will not just get on with it as it takes 12-18 months for a rate rise to filter through to the economy." He pointed to the low unemployment figures in the US as a signal for rates to be increased. The US added 223,000 jobs in April, mainly...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read
Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read
Bank of England halts interest rate cuts amid ongoing inflation

Bank of England halts interest rate cuts amid ongoing inflation

As priced in by markets

Sorin Dojan
clock 20 March 2025 • 2 min read