The Federal Reserve Will Postpone Raising Interest Rates Because Of The Turmoil In China'S Stock Market.

Goldman Sachs: China's economic uncertainty will cause the Federal Reserve to postpone raising interest rates.

China

The sharp shock is causing more and more worries. Investors even postponed the Fed's interest rate hike.

"We found in recent customer communication that some investors believe that the uncertainty of China's economy will cause the Federal Reserve to postpone raising interest rates until 2016," DavidKostin, chief strategist of the US stock market at Goldman Sachs, said in a report to customers on Friday.

This Monday,

Another plunge, stock index fell 8.5%, the largest in eight years.

For Goldman Sachs, it believes that the Fed's first interest rate increase in ten years was in December instead of 2016.

However, Kostin does not deny that China and other factors will have an impact on the Fed's interest rate hike.

"Cloth oil has fallen by 20% in the past 10 weeks, and China's economic growth prospects are worrying, all of which are faster than the acceleration of the US economy."

He said.

However, there is also a view that China's capital market volatility is not enough to cause.

Policy changes, unless this makes China's economic downturn or trigger tightening spiral drag on the global economy.

MichaelFeroli, chief economist at JP Morgan, believes that the Fed will pay more attention to China's economy rather than financial markets. "The latest statistics show that China's economy is more like a soft landing rather than a crash, which is a good progress in the long run, so I don't think China's stock market is the most concern of the Fed."

On Thursday, the US Federal Reserve FOMC will announce interest rate resolutions. Investors can look for clues to raising interest rates in a policy statement issued after the meeting.

Earlier, Federal Reserve Chairman Yellen made a statement that she thought it would be appropriate to raise interest rates this year.

But with the increase in uncertainty in the overseas environment (from China to Greece), speculation that the Federal Reserve may postpone raising interest rates is heating up.

In a June statement, the Federal Reserve said that the progress of the international environment could be a reason to postpone the increase in interest rates.

According to a survey conducted by the Wall Street journal in mid July, most economists expect the fed to raise interest rates in September, but think the Fed may wait until December.

Most market participants expect the fed to raise interest rates in December.