The Wide-Ranging Implications of Market Volatility
Volatility has reawakened in the $5.1 trillion foreign-exchange market, as traders start to imagine life without ultra-easy monetary policy. The impact is greatest in the currencies with most at stake from an end to years where stimulus only got more generous -- the so-called high yielders. European Central Bank President Mario Draghi this month downplayed the need for an expansion of quantitative easing, while speculation has grown that the Bank of Japan could scale back longer-term bond purchases. Traders see better-than-even odds of higher U.S. interest rates by year-end. London School of Economics Emeritus Professor Charles Goodhart and Panmure Gordon Chief Economist Simon French discuss with Bloomberg's Francine Lacqua on "The Pulse."