As central bankers from around the world gather this week in Jackson Hole for the Federal Reserve’s annual Economic Policy Symposium, one key topic of discussion will be the current global stock-market turmoil. There are many reasons for these gyrations, but the expectation that the Fed will start to raise interest rates – perhaps as early as September – is clearly one of them. The arguments for a rate hike are valid. The United States’ economy is gaining traction. The International Monetary Fund forecasts 3% annual growth in 2015 and 2016, accompanied by inflation rates of 0.1% and 1.5%, respectively. When an ... (full story)