Financial Times FT.com

Economy & Fed

Fed’s efforts to calm markets not over

By Krishna Guha in Washington

Published: August 13 2007 19:44 | Last updated: August 14 2007 01:20

The calmer tone in global markets on Monday will encourage Federal Reserve policymakers to believe they are striking the right balance in response to credit market upheavals: stepping up liquidity support aggressively when needed, but holding fire on interest rates.

But with further credit bombshells likely, there is every possibility that the coming days will see renewed turmoil and fresh pressure on the US central bank to consider rate cuts.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this