The risk asset sell off has triggered a fair mount of “what does this mean for the Fed?” takes. Since this Brian Chappatta article on Bloomberg matched a lot of my views, I will keep these comments brief. One thing that I would like to emphasise: the Fed has a lot of time before the March meeting, which is the most plausible date for a first hike. Although risk assets have been hammered over the past few trading days, six weeks is an eternity in “market time.” If equities kept plunging for the next six weeks, that would imply a very severe bear market — which probably signals that something else is wrong in the financial system and/or economy.
Fed Has Plenty Of Time To Decide
Fed Has Plenty Of Time To Decide
Fed Has Plenty Of Time To Decide
The risk asset sell off has triggered a fair mount of “what does this mean for the Fed?” takes. Since this Brian Chappatta article on Bloomberg matched a lot of my views, I will keep these comments brief. One thing that I would like to emphasise: the Fed has a lot of time before the March meeting, which is the most plausible date for a first hike. Although risk assets have been hammered over the past few trading days, six weeks is an eternity in “market time.” If equities kept plunging for the next six weeks, that would imply a very severe bear market — which probably signals that something else is wrong in the financial system and/or economy.