If this market turmoil forces a US rate cut, the outlook will truly be grim

A global economy in robust health ought to be able to withstand action by the Fed at the same time as a market correction. But it's not clear that it can

This time last month stock markets were starting an end-of-year rally, cheerfully regarding the US Federal Reserve's small increase in interest rates as evidence of the underlying strength of the global economy.

Now, says William White, former chief economist of the Bank for International Settlements, the situation is as bad as in 2007, the onset of the banking crash.