According to Reuters, the recent market turmoil should not delay the Federal Reserve from raising interest rates in September.
St. Louis Fed President James Bullard told Reuters he still favored hiking rates at the Fed’s next policy-setting meeting, though he added the U.S. central bank would be hesitant to do so if markets were still volatile at that time.
Fears remain over the health of China’s economy and if those fears continue through September, that volatility will likely remain in the market.
Federal Reserve Bank of New York President William Dudley said “the case for raising rates in September now seems less compelling,” following the roller-coaster ride the markets saw in the last week.
