While stock traders continue to speculate whether the US Federal Reserve will raise interest rates this month and what impact it may have on equity markets, ‘Dean of Valuation’ Aswath Damodaran called the debate pointless as fundamentals will determine what the American central bank’s decision will be.
Before Kevin Warsh took charge as the new Fed chief earlier this year, US President Donald Trump had turned up the heat against Warsh's predecessor Jerome Powell for not reducing the rates. He backed Kevin Warsh, expecting him to cut rates after appointment. But Warsh’s recent commentary seems to be hinting at rate hikes. Trump recently called the members of the rate-setting Federal Open Market Committee “clowns”.
