Chinese economic activity could pose risks to U.S. economic outlook

The low level of inflation and wage inflation is creating doubts in the U.S. economy. Some participants cited downside risks to inflation, pointing to the absence of any noticeable response of inflation to the reduction in resource slack over the past several years, risks of further declines in oil and commodity prices, and the possibility of further appreciation in the dollar. The downward pressure on inflation from the previous declines in energy prices and the effects of past dollar appreciation would prove to be temporary. 

Chinese economic activity could pose risks to the U.S. economic outlook. A possible divergence in interest rates in the United States and abroad might lead to further appreciation of the dollar, extending the downward pressure on commodity prices and the weakness in net exports, says Dnaske Bank.