The Fed can't ignore China this time

The biggest interest rate policy announcement in years is almost here.

At 2:00 p.m. ET on Thursday, the Federal Reserve will announce the outcome of its two-day monetary policy meeting, and they will reveal whether or not they chose to raise interest rates for the first time in nearly a decade.

When it comes to the Fed's decisions, it's main concern is the US economy. So often times it downplays what's happening overseas.

However, this time around, things are a tad different as what's happening overseas is having materially affecting businesses that make up the US economy.

Over the summer, China has been front and center with its volatile stock market, its newly devalued currency, and its slowing economic metrics.

And US businesses are speaking up as reported by the the Beige Book, the Fed's collection of business anecdotes from across the US.

"Relative to the last FOMC meeting (in June), US data have provided no smoking gun in either direction. But new axes of uncertainty are emerging," writes UBS strategist Themos Fiotakis. "Market volatility and risks to growth associated with the economic slowdown in China. 'China' was a frequent reference in the Beige Book of economic conditions prepare for the September meeting."

As seen in the chart below, the spike in the number of China references in September's Beige Book is a quite noticeable.