The case for a rate hike in September is "less compelling" given international developments and volatility in financial markets, said William Dudley, the president of the New York Fed, on Wednesday. In brief remarks followed by questions from the press, Dudley said downside risks have risen given the slowdown in China, the drop in commodity prices, and the market gyrations. He noted that his views could change before the U.S. central bank meets on Sept. 16-17. Dudley said a drop in the stock market must be persistent to impact consumer spending. Dudley is an important voice because he is seen as a close ally of Fed Chairwoman Janet Yellen. Dudley said the Fed pays attention international events, like the recent slowdown in China, to gauge how it may impact the U.S. economic outlook.