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Weekend comments from Federal Reserve Vice Chairman Stanley
Fischer appeared to keep the door open for a rate hike next
month.
U.S. inflation will likely rebound as pressure from the dollar
fades, allowing the Fed to raise interest rates gradually,
Fischer told CNBC at the global central banking conference in
Jackson Hole, Wyoming.
Fischer's comments suggest the Fed could look beyond a week of
stock market turmoil brought on by fears that China's economy is
faltering.
Wall Street closed flat on Friday after a tumultuous week that
featured both the market's worst day in four years and biggest
two-day gain since the financial crisis.
Chinese shares had another volatile session on Monday. The
Shanghai Composite lost 0.8 percent, while the blue-chip CSI300
index ended up 0.7 percent. Both were down more than 4
percent at one point.
The two indexes lost about 12 percent for the month, and nearly
40 percent since mid-June despite repeated and unprecedented
measures by the government to shore up the market.
Investors will be keeping a sharp eye on economic data again
this week, especially the monthly jobs report on Friday, the
last one before the Fed meets on Sept. 16-17.
The U.S. central bank has said it will raise rates only when it
sees a sustained recovery in the economy. While the job market
has improved steadily, inflation has remained below the central
bank's 2 percent target for more than three years.
J. C. Penney shares were up 3.8 percent at $9.28 in premarket
trading after Deutsche Bank raised its rating to "buy" from
"hold".
Twitter was up 2.1 percent at $27.45 after SunTrust Robinson
raised its rating to "buy" from "neutral".
(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)
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