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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/fed-urged-to-implement-emergency-rate-cut-amid-global-market-turmoil/
The urgency of the situation is underscored by Nigel Green, CEO of deVere Group, a leading independent financial advisory and asset management firm.
He emphasizes the Federal Reserve’s immediate need to reduce US interest rates by 25 basis points to stabilize global markets.
Green’s call for immediate action comes as the Federal Reserve prepares for an emergency meeting on Monday, prompted by a significant correction in Japan’s stock markets, where the Nikkei index plummeted by 12.4% to 31,458.42, marking its most significant one-day drop since October 1987.
Green emphasizes, “The Federal Reserve needs to adopt a more aggressive monetary policy stance to prevent a potential recession in the world’s largest economy.
This is not a time for caution, but for decisive action.”
“The Fed was initially slow to react; it cannot afford to make the same mistake now.”
Green advocates for an emergency rate cut of 25 basis points this week, with another anticipated reduction in September to mitigate market panic and speculation.
Recent market movements underscore the urgency of this intervention. Japan’s Nikkei index plummeted by 12.4% to 31,458.42, marking its most significant one-day drop since October 1987. The broader Topix index fell 12.48% to 2,220.91.
European equities have also suffered, with the STOXX 600 index declining 2.6% to 487.15 points and the UK’s FTSE 100 experiencing its steepest drop in over a year.
Green added, “The Federal Reserve must act swiftly, especially in light of Friday’s weak jobs report, which has exacerbated fears of an economic slowdown.”
Green warns, “Failing to announce an emergency interest rate cut in response to this global market turmoil would be a serious oversight, potentially leading to further market panic and speculation.”
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/fed-urged-to-implement-emergency-rate-cut-amid-global-market-turmoil/
