Fed must not overreact to developments in China: Lacker

The Federal Reserve must be careful about reacting to China's financial turmoil without seeing clear signs of danger for the U.S. economic outlook, a Fed policymaker said on Friday. Richmond Fed President Jeffrey Lacker said the Asian financial crisis of the late 1990s, which helped prompt interest rate cuts by the U.S. central bank, was a "great analogy" for viewing the current situation. "People overestimated the implication of the Asian market volatility for U.S. growth and we overreacted," L