Fed’s Kashkari doubts a stock market drop would trigger financial crisis
Posted: Wed Mar 22, 2017 7:27 am
MarketWatch - 3/21/2017 - Jeffry Bartash - WASHINGTON (MarketWatch) — A Federal Reserve policymaker said Tuesday he doubts a big drop in the U.S. stock market would trigger a broader financial crisis. Neel Kashkari, head of the Minneapolis Fed, said in response to a question on Twitter that he doesn’t worry about a stock market decline. All that really matters is whether the financial system — basically the lifeblood of an economy — remains sound. A number of stock market crashes have occurred throughout U..S. history. In some cases they coincided with broader financial crises, but in other instances such as 1987, markets recovered quickly and there was no effect on the broader economy. In a Twitter Q&A, Kashkari also said the U.S. economy is more likely to experience low inflation under 2% than a burst of higher inflation. Read more @ http://www.marketwatch.com/story/feds-k ... 2017-03-21