During the past several weeks, global financial markets have reacted with great volatility. The two key drivers are increasingly bad economic news coming out of China as well as the anticipated increase in U.S. interest rates, the first such rise since 2006.
To cut right to the chase: The Federal Open Market Committee of the Federal Reserve Bank of the United States should not raise interest rates!
Central bankers who favor an increase in U.S. interest rates overlook that they no longer live in their parents' world economy. As a matter of fact, too many policymakers and central bankers across the globe still live in the 20th century.