Don't Blame the Fed for This Month's Stock Market Downturn

In between worrying about a global slowdown, falling oil prices, and January’s stock market selloff, market watchers are also playing a game called What Was Janet Thinking? Janet, being Janet Yellen of course. As stocks have struggled in January, some are questioning whether the Federal Reserve jumped the gun in raising rates late last year. ‘I don’t think you can blame the Fed for what is going on,’ said Leahey. ‘Right now the market is saying if you take your tune from commodities, spill it over to manufacturing which is in its own recession, if you think that’s truth, then the Fed made a big mistake in December, because the economy is going to weaken in line with the manufacturing sector,’ said Carey Leahey, Chief U.S. Economist at Decision Economics. TheStreet's Rhonda Schaffler has details from New York.

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