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Fed's Lacker: China shouldn't have much effect on US

Comments from Lacker were made Jan 18 but just released now

  • Tough to see a brad, strong channel of transmission from China
  • Fed risks overreacting to China
  • During 1998 Asian financial crisis, Fed cut three times expecting turmoil but it never materialized and Fed got behind the curve

The comments were recorded for a Bloomberg radio interview that will be broadcast on Saturday.

I find it troubling that Lacker is so quick to blame the turmoil on China. That reeks of jumping to conclusions and I disagree with those conclusions. To me, the turmoil isn't about China, it's all about commodities and there is definitely a 'transmission channel' to the US there, given the massive oil industry in the US.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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