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Jakobsen: Why the Fed must raise rates before it's too late
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Saxo Bank's Chief Economist, Steen Jakobsen, says that the recent sell-off in the market has scared investors away. He says volatility remains high as people await the Federal Reserve's decision on what to do about a rate rise.
Jakobsen believes that there will be a hike next week. He warns that if it doesn't happen this month, it could become too late to act.
But there have been warnings that a rise will hurt emerging markets. Steen says the opposite is true and blames the status quo for poor EM performances. He says this has led to a strong US dollar and increasing uncertainty in the markets. He explains why the USD needs to weaken and why that will begin only when the FOMC acts.
Steen also explains why Saxo Bank's Q4 reports will look at why emerging markets offer opportunities and value.