Make or break: Is the US robust enough to cope with a rate rise?

Meera Hearnden, senior investment manager at Parmenion Capital Partners, argues the pace of interest rate increases could negatively impact the US

The S&P 500 was down almost 2.6% in sterling terms in the year to 23 September, a stark contrast to 2014 when it posted a strong double digit return of almost 21%. The focal point for many investors this year has been whether or not the US Federal Reserve would raise interest rates, and, if so, when and by how much. Despite the consensus, the Fed decided to leave interest rates unchanged in September. While the Fed has signalled the path of interest rate rises is likely to be shallow and gradual, there is a risk that delaying the start of rate hikes could ultimately require the Fed to...