JACKSON HOLE, Wyo.—The vice chairman of the Federal Reserve has indicated that the central bank may still go ahead and raise the benchmark interest rate at its next meeting in September.
Fed watching, especially with rates at near-zero for more than a half-decade, has become a popular sport among many, including credit unions. CUToday.info has been running a series offering insights and strategies into pricing should the Fed raise rates.
The New York Times reported that Stanley Fischer, the Fed’s vice chairman, indicated that the Fed has been preparing to raise rates in the near future because of what he called “impressive” growth in the U.S. economy. But the Fed’s intentions have been muddied recently due to the downturn in the Chinese stock market and the resulting volatility in the U.S. market.
The New York Times said that Fischer suggested that the recent volatility of global financial markets could cause the Fed to hesitate, but only if it persisted.
“We haven’t made a decision yet, and I don’t think we should,” Fischer told cable network CNBC. “We’ve got time to wait and see,” because the Fed’s policy-making committee does not meet until Sept. 16 and 17.
Fischer’s comments came during the annual conference hosted here by the Federal Reserve Bank of Kansas City.