The Dow Jones Industrial Average is down 34 points or around 0.2%, after disappointing economic news but comments from a US Federal Reserve member that interest rates were likely to rise by September. The US market had pushed back the prospect of an increase in borrowing costs after last week’s Fed meeting, but Atlanta Federal Reserve president Dennis Lockhart told the New York Timesthe central bank would have to be really disappointed by economic data to wait beyond September. Lockhart - who has yet to vote for a rise in rates - said:
He was speaking on Monday, ahead of the latest data for durable goods - long lasting items such as cars and machinery - which showed an unexpected fall. Orders fell 1.4% in February compared to expectations of a 0.4% rise, indicating a slowdown in global growth was hitting US manufacturers. The news has already led to cuts in GDP forecasts:
