Fed’s Fischer: ‘Too Early’ to Decide on September Rate Hike

Federal Reserve Vice Chair Stanley Fischer said it’s too early to tell if the central bank will raise interest rates in September. ‘I think it's early to tell: The change in the circumstances which began with the Chinese devaluation is relatively new and we're still watching how it unfolds, so I wouldn't want to go ahead and decide right now what the case is,’ he told CNBC on Friday in Jackson Hole, Wyo., where various Fed officials are gathering for an annual economic symposium. Fischer also said that the storm of market volatility seen in the last week could affect the timing of a liftoff. ‘It’s unbelievable that with about [three weeks to go until the Fed’s September meeting], they are still uncertain,’ said Jasper Lawler, a market analyst with CMC Markets, based in London. ‘But obviously the devaluation of the yuan is a bit unprecedented and it could impact policy decision within the next few weeks.’ The Fed’s preferred inflation gauge, the personal consumption expenditure price index, rose just 0.1 percent on a core basis in July, according to a report Friday from the Commerce Department. ‘The only reason to hold off on a rate hike would be for weak inflation,’ Lawler added. TheStreet’s Scott Gamm reports from New York.