Which path will Fed follow after tough start to 2016?

Four rate rises planned

Economists believe the Federal Reserve should still be able to go ahead with at least three small interest rate rises in 2016, despite renewed market turbulence and the release of weak manufacturing figures for the world's largest economy.

The Fed raised rates for the first time since 2006 by 0.25% last month, with its forecasts pointing to a further four increases this year. However, these figures may now look a little optimistic, in light of economic conditions at the start of 2016.   For example, the Institute for Supply Management's (ISM) monthly manufacturing index, which monitors the performance of more than 300 manufacturing firms, fell to 48.2 in December, with readings under 50 indicating more companies are shrinking than expanding. In addition, the ISM's non-manufacturing gauge rose to 55.3, indicating that th...