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Koefoed: Why the FOMC will delay a rate rise again

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It's not expected to be a ground breaking FOMC statement when the meeting closes later this Wednesday. Saxo's Mads Koefoed says he expects a rate rise to be pushed back to September at the earliest partly due to low inflation.

He also notes that wage pressure isn't there despite the unemployment rate dipping to 5.6% in December. Wages need to pick up, he says, before rates can increase.

Koefoed believes the strong dollar is proving problematic for some US multinationals. But he thinks low energy prices will balance this out.

Finally, Koefoed says the FOMC will have been discussing the ECB QE, He thinks the programme will help stimulate equities and expects it to contribute to a 'wealth effect' for both European and American equity holders. He also predicts the US economy will grow around 3% this year.