Federal Reserve and Global Economic Slowdown

global economic slowdown: This was no knee-jerk drop on a boring summer day, either, according to Market Watch. The decline was a long time coming, precipitated by weak corporate earnings, a global economic slowdown and concerns over higher borrowing costs as the Federal Reserve prepares to raise official interest rates. It was worst rout of the year for U.S. markets. And guess what There not even a guarantee that the Fed will start its lift-off in September as some economists have been predicting. So if these are the fireworks we’re seeing now, just imagine the uncertainty as we approach September Fed policy meeting with oil in the $30s and Chinese equities in utter turmoil. Not only does the market have a history of forecasting tighter policy too early, but the current conditions of low inflation and a strong dollar don’t exactly add up to a compelling case for higher rates. (news.financializer.com). As reported in the news.