Dollar, yuan moves cloud US growth outlook: Fed official

Yuan banknotes and US dollars are seen on a table in Yichang, central China, on August 14, 2015The stronger dollar and China’s currency devaluation are clouding the US economic growth outlook, a top Federal Reserve official said Monday, while reaffirming that he still expects an interest rate hike this year. Dennis Lockhart, head of the Atlanta Fed and a member of the policy-setting Federal Open Market Committee, said that the US economy’s recovery from the Great Recession in mid-2009 notched an average annual rate of 2.1 percent, “slow growth” compared with other post-World War II recoveries. “Currently, developments such as the appreciation of the dollar, the devaluation of the Chinese currency, and the further decline of oil prices are complicating factors in predicting the pace of growth,” said Lockhart, according to his prepared remarks at a forum in Berkeley, California.

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