Will the Fed's emergency interest rate cut of 0.75% solve the root cause of the current global jitters? No.
Will it result in more stability on equity markets? Maybe - but only in the short term.
Will it mean increasing concerns about inflation in the US? YES.
It might, however, mean a more stable day here, even the possibility of the NZX finishing in positive territory for the first time this year.
At The Hive, we don't like inflation, we don't like recession and we don't like the growing differential in interest levels between the US and New Zealand. We don't want the carry trade to spring back to life. High interest rates and a high NZ$ is just what we don't need here.
