Yuan devaluation puts expectations of Fed rate hike in doubt

Growing belief in U.S. markets that the Federal Reserve is getting closer to raising interest rates, possibly as soon as September, dissipated Tuesday when China devalued the yuan. If global equity markets keep falling, the Fed could decide to delay raising rates. CME Group’s FedWatch, which tracks futures pricing, says investors see a 39% chance of a rate increase in September, down from last week’s 56%.

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