The British vote to exit the European Union won't derail the U.S. economic recovery, it could force policymakers to remain cautious, according to former Federal Reserve Chair Ben Bernanke.
"In the United States, the economic recovery is unlikely to be derailed by the market turmoil, so long as conditions in financial markets don't get significantly worse: The strengthening of the dollar and the declines in U.S. equities are relatively moderate so far," Bernanke wrote in his blog. "Moreover, the decline in longer-term U.S. interest rates (including mortgage rates) partially offsets the tightening effects of the dollar and stocks on financial conditions. However, clearly the Fed and other U.S. policymakers will remain cautious until the effects of the British vote are better sorted out."
Bernanke wrote "the biggest losers, economically speaking, will be the British themselves."
