U.S. Federal Reserve Board Chair Janet Yellen
U.S. Federal Reserve Board Chair Janet Yellen (L) raises her hand to comment as she and Treasury Secretary Jack Lew (R) participate in Financial Stability Oversight Council open meeting at the Treasury Department in Washington January 21, 2015. Reuters/Jonathan Ernst

Global accounting firm Ernst and Young's chairman Mark Weinberger has said the US economy looks fine for a rate hike, but global economy continues to be uncertain, fragile and fragmented.

“The U.S. economy is stable (but) it has significant headwinds. You're looking at tremendous uncertainty," he told CNBC, while noting that conditions are looking ripe for a December interest rate hike in the US, though there are areas of concern. The EY boss said that conditions appear ripe for a rate hike.

“Look at the overall economy: Low interest rates, low inflation, energy prices low, job growth stable, wages starting to rise,” he said.

“There is a sense of normalcy there, but not strong growth."

Fed divided

According to him, the tug-of-war within the Fed was visible in the summary released after its Open Market Committee's meeting held in October. The minutes released on Nov.18 contained the expected nod for raising the funds rate in December if the conditions are right. But it also showed the committee as a divided lot, perhaps more in sentiment, if not in actual voting. As a result, traders are discounting the possibility of a December rate hike. The ratio of those expecting a hike have come down to 68 percent from the previous 74 percent.

Geopolitical uncertainty

Weinberger attributed the wavering viewpoints to factors beyond economic conditions and as involving the geopolitical uncertainty and diverging monetary policies.

“What's happening with ISIS and the terrorism around the world. It could be what's going on in Syria; it could be election results; it could be China in August devaluing the currency," he said.

He also referred to the monetary policy around the world going in completely different directions.

“The ECB, of course, in Europe is going ahead and doing quantitative easing; the U.S. is thinking of raising rates as the U.K. is' China and Japan are providing liquidity. So the effect on the commodity and currency markets is just creating tremendous uncertainty,” Weinberger observed.

Meanwhile, EY and social media network LinkedIn joined hands for a deal, whereby the former will use LinkedIn to drive social selling of the businesses.

Commenting on the deal, Weinberger mentioned the businesses’ shared “sense of purpose,” and said the tie-up would advance the services of EY to the clients in a changing world.

Jeff Weiner, LinkedIn’s CEO, described it as the biggest single deal in its history, reports The Economia.

“Our collaboration with EY will enable us to leverage its extensive capabilities, footprint and global reach. Together, we'll help companies develop deeper and more trusted customer relationships through social and data analytics,” Weiner added.

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