On Friday, Fed Vice Stanley Fischer said it is too early to tell how recent market movements will affect the reasoning for the decision next month.
“The change in circumstances, which began with the devaluation of the Chinese currency is relatively new and still observe its development, so do not want to decide right now what is the case – more convincing, less convincing, etc.” he told CNBC. “We have a little more than two weeks before you make a decision,” he said. “And we have time to wait and look at incoming data to see what is happening now with the economy,” said Fischer.
Chinese markets continued to recover on Friday. Exchange Shanghai Composite Index rose nearly 5 percent after Thursday rose by 5.4%. Despite increases in the last two days the index ended the week with a fall of 7.8%. The growth at the end of the week due to the fact that the authorities have ordered the pension funds, which are managed by local authorities soon begin to invest 2 trillion. yuan (313 billion. dollars) in shares and other assets. This move followed the decision of the Chinese central bank to cut rates and reserves of banks to increase liquidity.
Investors also did not take into account official data on Friday that showed an annual decline of 2.9 percent in profits in the industrial sector of China in July. The report is “not so terrible as we expected,” said Bill Adams of PNC Financial Services.