Grexit fallout not enough to throw US rate hike off course

Washington

THE fuse may be lit for a Greek exit from the eurozone, but the fallout in the US is expected to be modest and not enough to throw the Federal Reserve's likely September rate hike off course, said former Fed officials and outside analysts watching the latest turn in Greece's crisis.

Major US stock indices closed down about 2 per cent on Monday following sharp declines in Europe and Asia, while yields on Treasury bonds fell as investors piled into US debt, as is typical in times of overseas stress. But the gyrations in the markets were not dramatic enough to waylay the Fed, analysts said.