Case for September rate hike less compelling, Fed´s Dudley says

Instability in global capital markets made the case for a September interest rate hike by the US central bank "less compelling" a Fed official said on Wednesday afternoon.

In an eagerly awaited 'question and answer' session following a briefing on the outlook for the Federal Reserve bank of New York´s jurisdiction, regional Fed president William C.Dudley said recent events overseas might blow the moderate recovery in the US economy off-track.

Nonetheless, he added: "I really hope we can raise interest rates this year. Let´s see the data unfold before we make any statements when that might occur."

Dudley was a well-known 'dove' among rate-setters Stateside but some analysts believed he would be well aware that any remarks he might make could have a bigger impact on markets on this ocassion.

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