World Bank Chief Economist: Fed Should Not Hike Given 'troubled' Global Economy

The Federal Reserve should not hike rates in September now that the world economy is looking so troubled, said Kaushik Basu, the World Bank's chief economist. In an interview with the Financial Times, Basu said a rate hike would be a "shock" to emerging markets as they still are reeling from the "bad news" last month of China's surprise devaluation. The World Bank's forecast in June of 2.8% growth for the global economy could be lowered given the slowdown in emerging economies like China and Brazil and developed economies excluding the U.S.