Could the Fed raise rates just as Emerging Markets crash?

Will the US Fed hike rates next week despite the warnings of an Emerging Markets crisis? Saxo Capital Markets Asia Macro Strategist Kay Van-Petersen says it will. The main reason, he says, is the strength of the labor market in the United States. Last Friday the Labor Department revealed that 173,000 jobs were added to the economy in August. Kay Van-Petersen says that even though the number didn’t match market expectations’ of 217,000, the revisions for June and July were up 44,000, signalling a long term recovery. On the other hand, “August tends to be a weaker month, and it also tends to have higher revisions to the upside”, he explains. Additionally, the unemployment rate is at 5.1%, which is a seven-year low. Now, there’s one caveat to Van-Petersen’s call, which is that the stock market has to hold up. To see which level of the S&P 500 index would be the critical for Fed not to hike rates, visit: (VIEW LINK)