Fed risks "panic and turmoil" if it hikes - World Bank chief economist
World Bank chief economist Kaushik Basu spoke with the FT
Emerging markets could be roiled if the Fed hikes rates on September 17, the World Bank's top economists warns.
"I don't think the Fed lift-off itself is going to create a major crisis but it will cause some immediate turbulence," Mr Basu said. "It is the compounding effect of the last two weeks of bad news with that [China devaluation] . . . In the middle of this it is going to cause some panic and turmoil.
"The world economy is looking so troubled that if the US goes in for a very quick move in the middle of this I feel it is going to affect countries quite badly," he said.
The IMF delivered a similar warning to the Fed in July and the G20 communique said central banks should "Carefully calibrate and clearly communicate our actions, especially against the backdrop of major monetary and other policy decisions, to minimize negative spillovers, mitigate uncertainty and promote transparency."