As a key trading partner, a slower growing China could, however, affect our exports. •  Second is the uncertainty in the timing of policy rate normalization in the US. The Fed Reserve first raised its target fed funds rate in December last year from 0– 0.25% to 0.25–0.50% for the first time since the Global Financial Crisis.
I disagree with this view: The FOMC has tested a variety of tools to ensure that we will be able to raise short-term interest rates when needed while gradually returning the portfolio to a more normal size and composition. But even if unjustified, such concerns could in theory reduce confidence in the Federal Reserve and so lead to an undesired increase in inflation expectations.