•International developments have raised downside risks •Still appears to be excess slack in labor market •Important not to overreact to market developments •Sept rate hike seems less compelling to me than it was a few weeks ago •Don't expect US dollar to rise indefinitely or oil to fall indefinitely •China economic slowdown could affect prices of US goods and services •Core inflation rate pretty stable so far •China slowdown has significant implications for commodities •International and financial developments can impinge outlook •Fed concerned about everything that affects outlook, not just economic data ... (full story)