New York Fed President William Dudley said, a September interest rate hike is ''less compelling'' than a few weeks ago. This comes amid the recent global stock market sell-off. Shartia Brantley reports.
The recent global stock market sell-off may have weakened the case for a September interest rate hike. New York Fed President William Dudley. SOUNDBITE: WILLIAM DUDLEY, NEW YORK FED PRESIDENT IN (ENGLISH) SAYING: "From my perspective, at this moment, the decision to begin the normalization process at the September FOMC meeting seems less compelling to me than it was a few weeks ago." But the Fed will also look at the economy, and it is improving. A recent Reuters poll showed the top U.S. economists think the housing market is strong enough to sustain an interest rate hike this year. Also, the durable goods report for July showed new orders increased by two percent, much better than expected. Next up - a key inflation indicator expected on Friday. BNY Mellon's Leo Grohowski. SOUNDBITE: LEO GROHOWSKI, CHIEF INVESTMENT OFFICER, BNY MELLON WEALTH MANAGEMENT, IN (ENGLISH) SAYING: "In our view, it is going to show a number that's likely to be closer to one percent than the Fed's two percent target. Our expectation is, the number is 1.3 percent, unchanged from the last report, and, so, we think, that not only will the inflation numbers allow the Fed to delay that interest rate tightening, but also the global news flow and the markets dislocation." The next FOMC meeting starts September 16th.