The U.S. Federal Reserve has hiked rates by a quarter of a percentage point and hinted at the possibility of two more rate hikes in 2017. While Wednesday's decision was based on jobs being created and a general pick-up in the U.S. economy, Andrew Freris, the chief economic officer of Ecognosis Advisory Ltd., believes future decisions will also be influenced by the Donald Trump administration's fiscal stance and the government's borrowing programme.
Freris told BloombergQuint that the U.S. President's election promise of lowering taxes will only force the administration to borrow more.
He considers the S&P BSE Sensex to be “outrageously expensive” at current levels and has a “neutral to pessimistic view” on the Narendra Modi administration. “I am still waiting to see those famous reforms that will change the structure of the Indian economy and I think I am going to have a very long wait,” he said.
Also Read: Fed Raises Benchmark Rate, Projects Two More Hikes In 2017
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