The Federal Reserve Must Pay Attention: China’s Economy Is in Serious Trouble

A disturbing characteristic of Jerome Powell’s Federal Reserve is how US-centric it has become. In following its data-dependent interest rate policy, the Fed makes little reference to world economic developments in general and to those in China in particular. It does so even though those developments could materially impact our economy. This is all the more surprising at a time when China, the world’s second-largest economy and, until recently, its main engine of growth, is in deep economic trouble. It is also surprising when that country appears to be on the...