Eyes on U.S. economy, Fed likely unmoved by China devaluation

By Jonathan Spicer NEW YORK (Reuters) - China's currency devaluation on Tuesday is unlikely to distract the U.S. Federal Reserve from a domestic economy that appears increasingly ready for higher interest rates. The U.S. central bank will hope that the surprise move is not the beginning of a series of competitive devaluations that could send the dollar much higher than its slight rise on Tuesday, weakening already soft U.S. inflation, economists and Fed watchers said. Fed policymakers could even