The US Federal Reserve Will Slow Down The Pace Of Raising Interest Rates. China'S GDP Growth Is 4%.

Many people do not believe that China's economy is growing at a rate of 7%, but if China's economy is really under the real growth rate of 4% and under 1.5%,

How will the world grow?

The worst case scenario is not enough for the fed to stop raising interest rates.

The worst part of China's economy is at least letting the Fed slow down the pace of raising interest rates.

Tao Wang, a UBS economist and its team, said: "we still expect the Federal Reserve to raise interest rates two times in 2016, and our benchmark case forecast is 4 times."

This is because Asia has little impact on the US economy.

Even if the revenue related to Asia Pacific, not just China, has fallen by 20-30%, the impact of such a drop on the standard & Poor's 500 index will probably be only about 1%.

Earnings shocks may fall slightly from 5% to 3.75%.

The role of "key channel of market sentiment contagion" will be maintained.

UBS expects that the 4% growth rate of China's economy will drive west Texas light crude to 25 US dollars per barrel, while the price of iron and copper will drop by 20% at present level.

However, the slowdown in China's economic growth may lead to more easing measures by the Bank of Japan and the European Central Bank.

However, the slowdown in China's economic growth will have a greater impact on the stock market than the real economy, because slower growth will destroy the bull market spirit.

UBS warned that a surge of risk aversion would "cause all the markets to fall."

The MSCI World index will fall by 25% to 30%, while the MSCI emerging market index will drop by about 40%.

So far this year, the iShares MSCI emerging market ETF has fallen by 15%, the US oil fund has fallen by 47%, the SPDR Standard & Poor's 500 index exchange fund has risen 1.1%, the SPDR standard and metals exchange and the mining exchange exchange fund have fallen 49.6%, while the iShares MSCI ACWI exchange fund has fallen 2.4%.