On Aug. 24, 2015, the United States stock market drooped to the lowest point since August 2008. A meltdown in the Chinese market caused stock markets around the world to record shocking slumps. The sharp drop in global trade growth this year is emphasizing a disturbing legacy of America’s financial crisis, including the general over-evaluation of stocks starting in 2000 and the Federal Reserve’s precautionary measures of decreasing the federal-funds rate (the banks’ overnight borrowing rate) to an infinitesimal level in 2008.

According to the history department and other economic experts, there is no reason to panic.

Upper School History teacher Nan Dreher, who teaches a course in Economics said, “I think in the long run the stock market is going to go up. I think the economy is in a good phase, but I think in the short term there may be a lot of volatility… Right now it is probably harder to predict than it normally would be because you have to keep track of what’s going on in China and whether the Fed [United States Federal Reserve] is trying to raise interest rates, which they’ve tried to do before, but then backed off.” Federal Reserve policy makers are preparing to raise short-term interest rates with a meeting on Sept. 17. Problems in China and shifts in the broader global economy have also rocked equity prices recently, and the Federal Reserve interest-rate increase will add to turbulence. However, once the traders adjust to the prospect of raised rates, markets will begin to calm.