05:48 GMT05 December 2020
Listen Live
    Get short URL

    The Federal Reserve funds rate hike could overprice the dollar, while producing little benefit for the US economy, according to investor Jim Rogers.

    As the US Federal Reserve prepares to raise its interest rate, oil and gold futures are expected to continue falling, according to US investor Jim Rogers, author of "Street Smarts – Adventures on the Road and in the Markets."

    According to Rogers, the result of the rate hike may be temporary, as it is not expected to boost the US economy, while making the US dollar overvalued. The result may be competing currencies, if the dollar is unable to hold up, Rogers told Sputnik.

    "It's already had an impact on commodity markets, we've all known that interest rates would be going higher. Commodities are down very dramatically in some cases over the last three or four years, so the first or second interest rate rise could probably make the bottom of commodity markets," Rogers said.

    The prediction follows pessimistic predictions by nearly all market actors, outside of Danish Saxo Bank investment bank's outrageous predictions for 2016. The bank's 'outrageous predictions' have been accurate at times, as when it predicted an oil slump for 2014 and a Chinese yuan depreciation for 2015, although the numbers have, in the case of the oil slump, been not outrageous enough.

    According to Rogers, the interest rate rise would not be exceptionally noticeable for the US economy because it is relatively insignificant. As a result, the overpricing of the dollar could put an end an end to the dollar era, according to the investor.


    Junk Bond Crash, Fed Anxiety Trigger Dollar Selloff
    Bank of England to Follow US Fed With Rate Hike as Outlook Improves
    US Fed to Stir Global Currency Crisis With Rate Hike
    oil price, gold, dollar, Federal Reserve System, US
    Community standardsDiscussion