With the US and the world economy looking much weaker than two months ago,Janet Yellen must signal that a March rate rise is off the agendaShare prices are tumbling. Bank shares are being clobbered. There is talk of a US recession, induced by a strong dollar that is already causing havoc in China, or much of the rest of Asia and Latin America. In the good – or bad – worn days,we could predict what the chair of US Federal Reserve would accomplish in these circumstances. Alan Greenspan would nick interest rates, or hint at his intention to accomplish so.
Is Janet Yellen, or Greenspan’s successor but one,of similar mind? If she is, she has an opportunity to say so on Wednesday when she begins two days of testimony before Congress. This event has suddenly assumed an importance that seemed unlikely when the Fed raised interest rates final December for the first time since 2006. Related: Fears over feeble growth cause global stock markets to drop Continue reading...
Source: theguardian.com