The US seems to be on track for a mild economic recovery. At this juncture, a 2+% Real GDP growth seems to be a sustainable number. Furthermore, Chairperson Yellen has repeatedly telegraphed the message that it is likely that the Fed will implement a policy of normalization of interest rates in the near future, subject to data input on an on-going basis. We believe that a hike in interest rates, albeit nominal, is likely in September. We maintain that the Federal Reserve is committed to being ahead of the curve, i.e. take action before inflation manifests itself. Yet the first early signs such as the increase in minimum wage, have already appeared on the horizon. The second issue is perhaps more relevant. The Fed has been under significant criticism from both political parties in Congress. Republicans in general have been critical of the zero interest rate policy implemented by Chairman Bernanke, whereas the Democrats are mindful of banks being too big to fail. The Fed is acutely aware of its critics on Capitol Hill and realizes that it would be providing political fodder for raising interest rates during the Presidential political season. In short, the Federal Reserve has a relatively small window of opportunity to raise rates.