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While many experts have expressed doubt as to whether the Fed will raise rates in September following Monday's Dow Jones crash, a rate hike seems even less likely after an influential policy maker from the Federal Reserve Bank of New York weighed in on the issue. Wednesday morning, New York Fed president William C. Dudley expressed the idea that a rate hike at September's Federal Open Market Committee meeting seemed quote, less compelling, close quote, than it was a few weeks ago following the turbulent stock market activity earlier in the week.
Dudley's remarks on Wednesday were the first public indication that recent events are influencing the Fed's plans for the September meeting. His comments on Wednesday make it seem less likely that the Fed will raise rates in September, since many investors are betting heavily against a rate hike and Dudley has previously stated he does not want the Fed to surprise markets. The next FOMC meeting will be September 16 and 17.
Multiple market indicators show solid strong stabilization within housing in June, mostly due to employment and current mortgages, according to Freddie Mac's Multi-Indicator Market Index released Wednesday. Housing markets are the strongest they have been since 2008, with the national index surpassing 80 in June. Both the current mortgages and employment indicators increased from May to June up to 82.7 and 101.7.
