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Business

Fed speakers dampen September rate hike talk

Opening sequence

Opening sequence

Business

Fed speakers dampen September rate hike talk

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COMING UP:Fed speakers dampen September rate hike talk

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Transcript

00:00:01
>> Cooler heads prevailing on Wall Street Monday as to whether the Federal Reserve will hike interest rates at its meeting next week. I'm Reuters reporter Conway Gittens in New York. Stocks snapping a three day losing streak. The Dow taking back some of the 400 point decline we saw on Friday.
00:00:18
Now it was a different story overseas though. Stocks in Tokyo having one of their worst days in about a month. And over in Europe, stocks were down about a full percent. As global investors take the idea more seriously that the Federal Reserve could soon hike interest rates. But that thinking, may be premature.
00:00:37
In a rare show of vocal unity, all three of Monday's Fed speakers seemed to say the same thing. Led by Fed Governor Lael Brainard, the message was clear. The Fed is not in a rush to raise rates.>> Expectations may have softened on the downside, and the persistent undershooting of inflation relative to our target, have important implications.
00:00:58
To the extent that the effect on inflation of further gradual tightening in labor market conditions is likely to be moderate and gradual, the case to tighten policy preemptively is less compelling.>> Investors interpreting that to mean there won't be a hike next week. Well that's not sitting well with everyone.
00:01:18
Republican nominee Donald Trump Monday accusing Fed Chair Janet Yellen of playing politics by artificially holding interest rates lower to make President Obama look good. Predicting she will raise rates after the election and cause a stock market plunge leaving the next President holding the bag. But investors are focusing on the data.
00:01:39
Hiring is slowing, the factory and services sector are shrinking, and inflation is still below the Feds comfort zone. With all that, they're sticking to predictions that a December rate increase is more likely than one in September.>> You mentioned-