Is the US at risk of a profits recession?

The US Federal Reserve's decision to raise interest rates at the end of 2015 marks a new phase for markets in the post-2008 recovery,writes Mark Harris, head of multi asset at City Financial.

By hiking rates, the Federal Reserve has staked its credibility on its view that economic growth is sustainable and that low unemployment will create inflationary pressures. This view sees the slowdown in year-on-year GDP growth over the course of 2015 as cyclical and transitory. Buoyed by the strong jobs market and cheaper energy prices, the US consumer is providing healthy support to the economy. Auto sales are strong, growth in miles driven is near a decade-high and the services economy remains in strong expansion mode. Yet bond markets have consistently priced a much slower trajec...