Is it all over? Is the emerging market turmoil no longer a concern among investors, economists and academics? Measured at least in the last week, the market is recovering some lost ground. Maybe January’s sell-off was enough and in the last week all boats seem to be rising once again. After all, there’s a new Fed Chair in Janet Yellen who has now officially taken over and the likelihood of easy monetary policy, tapering of asset purchases notwithstanding, isn’t expected to change.
MSCI’s emerging market benchmark stock index has rebounded 3.5 percent from a Feb. 4 low. The U.S. benchmark S&P 500 stock index has risen slightly more over the same period.
NEWARK, Delaware (Reuters) – Assessing the U.S. economy’s underlying economic trends has become more difficult because of record low temperatures and heavy snowfall across much of the nation, Federal Reserve Bank of Philadelphia President Charles Plosser said on Tuesday.
“I suspect it may be another couple of months before we have a better read on the economy,” Plosser said in a speech at the University of Delaware. He characterized the weather as “unusually disruptive.”
NEWARK, Delaware (Reuters) – Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said on Tuesday history is not on the side of the central bank when it comes to raising interest rates in a timely manner and the risk is financial markets will force its hand.
Plosser, speaking at the University of Delaware, said it is always easier to lower interest rates to spur economic activity than to raise interest rates, a mechanism to slow the pace of inflation.