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What Lurks Beneath? Market Calm Unnerves Central Bankers

Global central bankers sounded the alert about the calmness in financial markets, saying it risked creating future instability and complicating monetary policy.

Twenty-four hours of warnings were led by Federal Reserve Bank of New York President William Dudley’s acknowledgment that the slide in market volatility “makes me a little nervous.” Bank of England Deputy Governor Charlie Bean said conditions were “eerily reminiscent” of the pre-crisis era, while Bundesbank board member Andreas Dombret said “we do see risks despite the fact that the markets are calm.”