Fed's Mester: stock market declines will not harm US economy
|Loretta Mester, head of the Cleveland Fed, made a speech late on Thursday where she highlighted that the current declines in equities that are rocking bourses around the globe shouldn't have a negative impact on the US economy.
Key highlights
The Fed's Mester, one of the more hawkish members of the US Federal Reserve's voting committee, noted that the recent rout in equities is far from causing significant repercussions within the US domestic economy, claiming that the current losses seen on major US indexes aren't severe enough to damage domestic business/consumer spending.
“While a deeper and more persistent drop in equity markets could dash confidence and lead to a significant pullback in risk-taking and spending, we are far from this scenario... Similar to the swings in the market we saw earlier this year, the movements of late do not seem to be signaling that investors are becoming overly pessimistic." - Fed's Mester
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.