Several Fed officials stepped up to say another rate hike could not be totally ruled out. Any large drop in interest rates would lead to easier financial conditions and the Fed is not keen on that. As the earnings season draws to a close, the results are upbeat in the US where annualised growth in the third quarter came in around 3%. We remain cautious over the medium term due to persistently tough financial conditions which will be having an impact on the real economy.
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