Thu 11 Feb 2016 / North America
Case for optimism rests on policy
Investors may be generating a bear market without the traditional accompaniment of recession, but there are also grounds for thinking that the markets may be on to something. As Janet Yellen, the US Federal Reserve chair, indicated on Wednesday night, the US central bank is softening its commitment to higher interest rates. The case for optimism rests on policy. The Fed does not have to tighten further and could reverse its December rate hike.