Fed's Powell: Emerging markets likely to cope with normalizing global economy

Jerome Powell, governor of the U.S. Federal Reserve

Andrew Harrer | Bloomberg | Getty Images

Jerome Powell, governor of the U.S. Federal Reserve

The normalization of monetary policy in the United States and other advanced economies should be manageable for emerging markets, Federal Reserve Governor Jerome Powell said on Thursday, although he cautioned on high levels of corporate debt.

“The most likely outcome is that the challenges posed to (emerging markets) by the normalization of global financial conditions will be manageable,” Powell said at an Institute for International Finance event in Washington on the sidelines of the International Monetary Fund and World Bank semi-annual meetings.

The…

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