The Fed should show some reserve and not plough on regardless

With the US and the world economy looking much weaker than two months ago, Janet Yellen must signal that a March rate rise is off the agenda

Share prices are tumbling. Bank shares are being clobbered. There is talk of a US recession, induced by a strong dollar that is already causing havoc in China, much of the rest of Asia and Latin America. In the good - or bad - old days, we could predict what the chair of US Federal Reserve would do in these circumstances. Alan Greenspan would cut interest rates, or hint at his intention to do so.

Is Janet Yellen, Greenspan's successor but one, of similar mind? If she is, she has an opportunity to say so on Wednesday when she begins two days of testimony before Congress. This event has suddenly assumed an importance that seemed unlikely when the Fed raised interest rates last December for the first time since 2006.

Related: Fears over weak growth cause global stock markets to fall