The free-falling U.S. stock market, stemming in part from the volatile Shanghai Composite Index of China, probably won’t impact the local economy, at least not for now, says a county economic leader.

On Friday, the Dow dropped 500 points and more than 1,000 on Monday just after the opening bell, although it slightly recovered throughout Monday afternoon recouping about 400 points at the close.

Executive director of the Lawrence Economic Development Corporation Dr. Bill Dingus feels the reason for the crisis is due to the uncertainty of interest rates in the United States.

“We do not see the stock market at this time having any dramatic effects on us locally,” Dingus said. “We believe what’s happening with the stock market is in response to the projected interest rates. We’ll be watching through September to see if the feds go through with the interest rate increases.”

If the stock market continues to go south, interest rates may not increase,” Dingus said. “If this stops interest rates from going up, it will be a positive for us,” he said.