Managers Apollo: Strong economy may keep Fed from cutting rates in November

Torsten Slok of asset manager Apollo said in a report on 21 October that the Federal Reserve may change course and not cut rates at all as data continues to show that the US economy remains relatively strong. He said, ‘The Federal Reserve Bank of Atlanta's forecast for third-quarter GDP is currently 3.4 per cent, with the bottom line being that the economy will continue to expand.’ Slok believes the economy is benefiting from favourable factors, including a dovish Fed, election uncertainty coming to an end, and easing geopolitical risks. Taking all these factors into account, Slok said, the Fed is more likely to leave rates unchanged in November than to cut them.