October 12, 2018

Wednesday's Stock Market Decline

Scott Sumner

Ralph G. Hawtrey Chair of Monetary Policy

Stocks dropped sharply this Wednesday morning.

I don't view this decline in stock prices as being important. In recent years, stocks have often plunged for a few days, and then recovered. I put more weight on the level of stock prices, which is still quite high. Thus, I believe the macro economy is still in very good shape...