Turmoil in Emerging Markets Tests Resilience of US and Europe

The most important question confronting investors is whether the United States and Europe will remain insulated from the economic turmoil that is now sweeping through the emerging markets.  Janet Yellen, who chairs the US Federal Reserve, is confident that the prospects for the world's largest economy "appear solid", clearing the way for an interest rate rise by the end of the year.In a speech last Thursday, Dr Yellen acknowledged that the Fed was keeping a close eye on what she described as "developments abroad", before adding that that "we do not currently anticipate that the effects of these recent developments on the US economy will prove to be large enough to have a significant effect on the path for policy".

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