Beware the Fed’s Feedback Loop in Emerging Markets

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Beware the Fed’s Feedback Loop in Emerging Markets
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Heard on the Street: Many emerging market economies look healthier because of volatile investment flows, not real economic progress

Fed Chairman Jerome Powell doubled down Wednesday on his new wait-and-see approach to monetary policy. This will prolong the good times for emerging markets, where stock markets have returned 2.8% over the past six months, compared with a 1.

2% loss for all stocks...
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