Head of New York Fed: Case for September interest rate hike 'less compelling'

Markets Associated Press

The head of the New York Federal Reserve Bank says he's less inclined to support a Fed rate hike in September amid recent global turmoil, including falling oil prices and a slowdown in China.

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William Dudley says the developments pose downside risks for the U.S. economy and have contributed to heightened market volatility.

Dudley told reporters in New York that at the moment, the case for the Fed to hike interest rates in September for the first time in nearly a decade is "less compelling to me than it was a few weeks ago."

He cautions against over-reacting to the sharp stock price declines until it becomes clear whether they represented a temporary adjustment or a longer-term trend with more serious economic implications.