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The Fed is about to make a massive mistake: Jakobsen

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Steen Jakobsen, chief economist and CIO of Saxo Bank, says the US Federal Reserve is on the verge of making a mistake about its projected rate hikes.

The Fed has given itself the option of hiking interest rates at its June meeting. But Jakobsen says he is sceptical about the proposals, arguing that the Fed is taking the recent improvement in US economic data as an uptick in overall momentum. 

Jakobsen says the economy is still performing significantly below its potential, but thinks the Fed wants to hike interest rates now so it can lower them at a later date.