Same Time Last Year?
In January 2016, as the Chinese stock market was taking a dip along with the SP500, Fed officials made some choice comments. One year later we review..
"To me, it is not as surprising than maybe to some commentators that we're seeing a weaker data in terms of manufacturing. This seems to be part of a process that's been going on in the last couple of years. We have been seeing pretty good data out of China on consumer spending in some of the other areas, so I'm not as concerned about that." – Jan 4, 2016 - SF Fed President John Williams
"To me, it is not as surprising than maybe to some commentators that we're seeing a weaker data in terms of manufacturing. This seems to be part of a process that's been going on in the last couple of years. We have been seeing pretty good data out of China on consumer spending in some of the other areas, so I'm not as concerned about that." – Jan 4, 2016 - SF Fed President John Williams
"If the volatility continues for several weeks, I may have to revise my view that I don't now see a connection between financial markets abroad and the real economy." – Jan 11, 2016 – Atlanta Fed Gov Dennis Lockhart
Another Fed official, Loretta Mester, had similar comments.
Another Fed official, Loretta Mester, had similar comments.
"We've built in a weakening path for China. I don't see that as a significant risk to the forecast" for the U.S. economy, the Cleveland Fed president told Bloomberg TV, according to Reuters.
Mester, a voting member of the Federal Open Market Committee, also said that weak Chinese manufacturing data "started sort of a downturn of the Chinese stock market and then that spilled over to the U.S. stock markets. I am not that concerned about that in terms of the U.S. economy."
Mester, a voting member of the Federal Open Market Committee, also said that weak Chinese manufacturing data "started sort of a downturn of the Chinese stock market and then that spilled over to the U.S. stock markets. I am not that concerned about that in terms of the U.S. economy."
Looking in retrospect at these seemingly oblivious comments, with an incoming Trump administration which has rattled the sword of protectionism, we have only one thing to Natter...
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