The US central bank reacts to the stock market only when volatility threatens financial stability. For the moment, there is no evidence of this. Moreover, one lousy jobs report does not make a trend.
Global sharemarkets are in turmoil, jolted by a disappointing US jobs report last Friday. Speculation is rife, as always in the wake of such moves, that the Federal Reserve will cut interest rates.
The Federal Open Market Committee has a few different options ahead.
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Financial Times
Barry Eichengreen is Professor of Economics at the University of California, Berkeley.
