The Federal Reserve met market expectations at its September meeting by
holding interest rates near zero. The rationale of its 9-1 vote:
elevated concern about global growth that in recent weeks has pushed
down inflation and injected greater volatility into asset markets.
Headlines out of Europe lately have been dominated by the challenges the
continent faces in handling the huge inflow of desperate migrants from
Africa and the Middle East. The good economic news that’s coming out of
the region is understandably getting less attention.
You didn’t really think the market’s roller-coaster ride was over
already, did you? This week’s headlines could have been recycled from
last week. We’ve seen another bout of volatility triggered by more
worries about weakness in China.
If the current worries of global investors could be summed up in a
single question, it would probably be, “Are things really that bad in
China?” An answer is elusive at this point even the government in
Beijing may not know for sure. But without that information, no one can
confidently predict where the market’s bottom might be.