With all mainstream media blame fingers pointing at China - because a market crash could never be America's fault - Chinese authorities are not best pleased with the rhetoric. As we noted earlier in the week, China's central bank blames The Fed for the market rout, and now, as Reuters reports, The PBOC has reiterated that a Fed rate hike will push EM into crisis and Yuan devaluation is not responsible for global market turmoil.
As Reuters reports,
- CHINA CENTRAL BANK OFFICIAL SAYS CAN'T BLAME YUAN DEVALUATION FOR GLOBAL MARKET TURMOIL
- U.S. FEDERAL RESERVE SHOULD DELAY RATE HIKE, COULD PUSH SOME EMERGING MARKETS INTO CRISIS - CHINA OFFICIAL
"China's exchange rate reform had nothing to do with the global stock market volatility, it was mainly due to the upcoming U.S. Federal Reserve monetary policy move," Yao said. "We were wronged."
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They may have a point...
Of course, now if The Fed delays, it will be seen a yielding to Chinese demands (perhaps for fear of more Treasury selling).
As a reminder, in addition to China, the Fed is now being bombarded with demands from the IMF, Larry Summers and of course the petulant market - not to hike!