Legal battle ahead for National Treasury, and US markets bet on September rate hold

• The Federal Reserve is expected to hold rates at current levels in September.
• The US markets' expectation of a rate hold is partly due to softer-than-expected US inflation, which reduced the likelihood of a September rate hike.
• The National Treasury's legal battle with the SARS may have implications for the Finance Minister's power to adjust the Value Added Tax rate without parliamentary approval.