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China Provides Calm for Markets Ahead of Potential Fed Rate Hike

  • Nation has recently been ‘linchpin’ for emerging markets
  • Yellen previously cited China uncertainty as a worry spot
Bloomberg business news

Will Fed's Yellen Settle the March Rate Hike Debate?

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While the world’s attention has been gripped by politics in the U.S. and Europe in recent weeks, China has been quietly cementing its newfound influence on financial markets.

In a week when U.S. Federal Reserve officials surprised investors by putting an interest-rate hike on the table for the March 14-15 policy meeting, emerging markets have taken those signals in stride. That’s a big change from May 2013, when the prospect of tapering the Fed’s quantitative easing saw a disorderly exodus of capital from those markets.