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Atlanta Fed President Dennis Lockhart said on Thursday that higher interest rates could have a negative impact on U.S. banks.
"For the first time in more than a decade, bankers face the potential of operating in a rising rate environment. Rising rates will create challenges in managing net interest margins and risks," he said.
Lockhart noted that further interest rate hikes will depend on the incoming economic data, adding that low energy prices and the slowdown in the Chinese economy added "new complexity" to U.S. forecasts.
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