Real economies are linked less than equity market moves seem to imply – Fed’s Lacker

FXStreet (Mumbai) – Richmond Fed’s Jeffrey Lacker (a hawk) was on the wires earlier on the day, noting the economies of the United States and China are linked less than recent volatility in US equity markets seem to imply.

Key Quotes:

“I think our real economies are linked less than you would think from the extent to which our equity markets seem to have moved in parallel with movements in their exchange rate and their equity markets,”

“In hindsight looks like an overreaction…the same thing is the case now.”

On Fed’s 2016 interest rates outlook, he repeated his preference for four interest rate hikes this year, although said, “I’d caution that that outlook can change fairly rapidly.”

Richmond Fed’s Jeffrey Lacker (a hawk) was on the wires earlier on the day, noting the economies of the United States and China are linked less than recent volatility in US equity markets seem to imply.

(Market News Provided by FXstreet)