Federal Reserve officials sounded an alert over the threat to U.S. growth from a slowdown elsewhere in the world, warning it could make them delay an interest-rate increase.
“If foreign growth is weaker than anticipated, the consequences for the U.S. economy could lead the Fed to remove accommodation more slowly than otherwise,” Vice Chairman Stanley Fischer said yesterday in a speech at the International Monetary Fund’s annual meetings in Washington.
The remarks, echoed by other Fed officials, highlighted mounting concern about the improving U.S. economy’s ability to withstand foreign weakness and a strengthening dollar. Similar worries last week prompted investors to tip the Standard & Poor’s 500 Index to its weakest level since May and push oil prices into a bear market.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.