Fed will steer US away from Japan-style meltdown, says L&G

The Fed will steer its economy away from a Japan-like meltdown despite similar traits between the reg...

The Fed will steer its economy away from a Japan-like meltdown despite similar traits between the regions, according to L&G’s Tim Drayston. The economist said there are many comparable characteristics between Japan in the 1990s and the US now but believes approaches to monetary policy are key. “The first recession in the early 1990s in Japan was not too severe,” he added. “The Bank of Japan did not see the necessity to cut interest rates rapidly and remained concerned about inflation as the yen was initially weak. The first rate cut only occurred in mid-1991 but by this point the stock ma...