Atlanta Fed President Dennis Lockhart said on Wednesday that markets overreacted to the weak Chinese economic data.

"China is slowing to still a very respectable pace of growth. It is ratcheting down a little bit, but there is a decent chance that the world is overreacting," he said.

Lockhart added that the spillover to the U.S. economy "is likely to be small".

Atlanta Fed president noted that the Fed should concentrate on the U.S. economy more than on the slowdown in the global economy.