With regards to the recent Chinese stock market decline, Federal Reserve policymakers may confirme that conditions for the first rate hike are not yet been met.
Although U.S. growth is showing it is in better shape than we thought three months ago, and its unemployment rate fell to 5.1 %, a September rate hike is "less compelling" now.
Unfortunately, with China's devaluation of currency and Shangai Stock Market's slowdown, which we saw in August, the consensus is gradually shifting to December for a rate hike.
It world be the FED's first rate hike in almost a decade and show that the central bank is confident in the health of the first world economy. Global economic slowdown in Summer 2015 and volatility in stock markets seemed to have lowered the chance of a rate hike in September. It is still unclear if it will happen.
It world be the FED's first rate hike in almost a decade and show that the central bank is confident in the health of the first world economy. Global economic slowdown in Summer 2015 and volatility in stock markets seemed to have lowered the chance of a rate hike in September. It is still unclear if it will happen.
