Fidelity CIO Rossi rejects need for further US rate hikes in 2016

Dependent on inflation expectations

Fidelity global chief investment officer of equities Dominic Rossi has argued there is "no reason" for the US to raise rates again this year.

In an update for investors, Rossi (pictured) said the Federal Reserve should hold interest rates in 2016 until there is a change in inflation expectations. "There is no reason for the Fed to raise interest rates at all in 2016 without a change in the direction of inflation expectations," he said. "The Fed needs to step back from this idea for four rate hikes this year." At the time of the first US interest rate rise since 2006 last December, chairman Janet Yellen said she was confident inflation would reach its 2% target over the medium term thanks to "sufficient" growth. Which ...