Federal Reserve officials signaled their intention to keep raising interest rates this year. REUTERS/Lee Jae-won
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Central bankers are no longer the circuit breakers for financial markets. Monetary policymakers, market saviors the past decade through the promise of interest-rate reductions or asset purchases, now lack the space to cut further or buy more. That's leaving investors having to cope alone with shocks such as this week's rout in China or when economic data disappoint, magnifying the impact of such events.Even against the backdrop of this week's market losses, Federal Reserve officials signaled their intention to keep raising interest rates this year.The influence of central bankers was underscored by a report this week from currency strategists at HSBC Holdings PLC, which calculated foreign-exchange markets are more sensitive to interest-rate decision-making than at any time in the last 15 years.
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