Fed Has Bigger Worries Than China

Monetary conditions are already starting to tighten.

Problems close to home.

Photographer: PAUL J. RICHARDS/AFP/Getty Images

Atlanta Federal Reserve President Dennis Lockhart acknowledged on Monday that collapsing Chinese stock markets, plunging commodity prices, and an intensifying currency war have complicated the central bank's decision about whether to raise interest rates. There are more fundamental reasons, however, why the Fed should be resisting its instinct to tighten policy.

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