Don’t be fooled by the markets’ turmoil – central banks were right to take decisive action on coronavirus

Economic volatility is inevitable, regardless of intervention from the US Federal Reserve, writes James Moore

The response was rather like that of an obstreperous toddler when presented with an unappealing breakfast. They threw it back in the FED’s face (Rex )

Well that went well. The US Federal Reserve cut interest rates by a half a per cent on Sunday, and unveiled a $700bn (£564bn) stimulus package as part of coordinated action alongside the UK, Japan, Canada, Switzerland and the eurozone.

The response of the markets to this was, however, rather like that of an obstreperous toddler when presented with an unappealing breakfast. They threw it back in the Fed’s face.

With a few notable exceptions – only Ocado’s loo roll was more in demand than its sprightly shares – traders’ screens opened the week to a sea of red. It was very much a case of Black Monday rides again. In response, there was a theory advanced that this was because, rather than in spite, of the Fed’s move.