The Federal Reserve should hold off on any interest rate hike until it is clear that a global slowdown, trouble in China and other international risks will not push the U.S. recovery off course, Fed Governor Lael Brainard said on Monday in one of the strongest defenses yet of a go-slow approach to policy.
Brainard has been among the most vocal Fed members in her concern about the likelihood that economic trouble in China could blow back on the United States. She extended that argument on Monday into a discussion of how whole regions of the world are being impacted by China’s slowdown.
The risks that the rest of Asia and commodity exporters in general will grow more slowly because of weak demand in China means the United States faces a continued drag from lower exports, a stronger dollar and generally slack world economic conditions.
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