Expect Rate Hike in 'September or Later' Says JPMorgan Chase Chief Economist

Investors should prepare for the Federal Reserve to announce a rate hike during its September meeting. ‘I think the Fed will probably lift rates either in September or perhaps a little bit later,’ said Anthony Chan, chief economist at JPMorgan Chase (JPM). Chan points to weak economic data as justification for delaying a rate hike, potentially during the Fed’s December meeting. Consumer spending remained flat in April, compared to March’s 0.5 percent gain, which was revised higher from a previously reported 0.4 percent jump, according to a report from the Commerce Department on Monday. Meanwhile, personal income rose 0.4 percent during April, while the personal savings rate jumped to 5.6 percent, compared to 5.2 percent in March. The next reading on the strength of the labor market is released Friday, when the Bureau of Labor Statistics reveals its May jobs report. Economists expect the addition of 220,000 jobs during the month. TheStreet’s Scott Gamm speaks with Chan.