Has Janet Yellen, the chair of the Federal Reserve, welcomed China as our 51st state?
In the transcript of her remarks at the most recent Fed news conference in September, where the FOMC decided not to increase the short-term interest rate from extraordinarily low crisis levels, Yellen cited "heightened concerns about growth in China" ... China!
The Fed was created by Congress to guide the U.S. economy. The unemployment rate in the U.S. is very low at 5 percent. Most economists forecast that the Fed should have already begun to normalize rates.
Is it prudent for the U.S. central bank to so heavily consider economic conditions in China? What are the risks of the Fed adopting China as our 51st state when setting domestic rate policy?
What are the risks of treating China so special?