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Brexit vote doesn’t change the task facing the Fed

While the UK Brexit vote triggered some initial volatility in financial markets, many of the adverse moves have already been unwound and overall financial conditions in the US remain considerably looser than they were just a few months ago. And with the UK only accounting for around 4% of US exports, the direct impact on the US economy is likely to be very limited beyond that. Accordingly, suggestions that the next move for the Fed could now be a rate cut, rather than a hike, appear well wide of the mark.

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