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Daily Archives: August 25, 2015

Yellen Weighs Interest Rate Hike

Posted in News

From Bloomberg … A rout in emerging markets led by China … triggered an equities sell-off in the U.S., with the Dow Jones Industrial Average dropping by more than 1,000 points in early trading before paring the decline to 588 points, or 3.6 percent, as of 4:15 p.m. in New York [on 8/24/15] . The turbulence had investors questioning whether the durable U.S. economy could withstand weakness abroad and wondering what that means for the timing of the Fed’s interest-rate liftoff.

“If market turmoil continues, the Fed will hold off hiking at the next meeting,” said Jonathan Wright, a professor at Johns Hopkins University in Baltimore and a former economist at the central bank’s Division of Monetary Affairs. “These market movements are getting sizable, and raise downside tail risks to growth and inflation.” See more here.