A Surgical Cut
The author is chief researcher of Bank of China
On March 9, all three major U.S. stock indexes tumbled more than 7 percent. A key market circuit breaker was triggered for the first time since the 2008 global financial crisis, with $3-trillion market value evaporating. The stock markets of other major economies also experienced a new Black Monday as a result of the spillover effect.
Aside from the impacts of a sharp drop in the oil market and the spread of the novel coronavirus, another factor is also regarded a reason for the turmoil.
On March 3, the U.S. Federal Reserve (Fed) announced its first emergency cut since the 2008 global financial crisis. It lowered its target
