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