By Seema Shah, Global Investment Strategist, Principal Global Investors
The market has been celebrating the Federal Reserve (Fed’s) more dovish stance, but two weeks after its U-turn, investors remain split over whether the Fed was responding to December’s market meltdown or fears of a weakening economy. I wrote* in the FT earlier this week regarding the former, but what if it’s the latter?
Most US data show a still-robust economy, yet I have considerable sympathy for any Fed concerns about the underlying economy. While the Institute for Supply Management ((ISM)) surveys point to continued