Global market turmoil has the potential to weaken US economic growth and inflation, Federal Reserve Vice Chair Stanley Fischer said today.
Fischer said in a speech that the ingredients for a global slowdown exist, though he stressed that it was still hardly clear how they will evolve and affect the Fed's interest rate policy.
He said that increased concern about the global outlook -- including China's slowdown and the crash in commodity prices -- appears to have sparked the volatility in global asset markets.
"At this point, it is difficult to judge the likely implications of this volatility," he said, according to his prepared remarks.
"If these developments lead to a persistent tightening of financial conditions, they could signal a slowing in the global economy that could affect growth and inflation in the United States.
