Will Italy And Emerging Markets Stop The Fed’s Hiking Cycle? Goldman Answers

Recent "problems" emanating from Italy, the potential for Spain to pop up as a political flashpoint (again) and perhaps most importantly in the near-term from the Fed's perspective, the prospect that further dollar strength and Fed hikes could trigger a dramatic unwind across EM, have together reignited the debate about whether the Fed would be inclined to pause for international developments. Obviously, the Fed would step in to stabilize global markets if the bottom fell out completely - like,