The turmoil in China has intensified the debate within a divided Federal Reserve over whether the inflation outlook will be strong enough to justify higher interest rates as soon as next month, as policymakers around the world struggle to get to grips with the clouded outlook for the People’s Republic.,,Events in China have shaken badly faith in the country’s economic management among officials attending the meetings in Jackson Hole, hosted by the Kansas City Fed, as well as exposing the uncertainty among western policymakers about the genuine health of China’s economy. Nowhere is the debate on the repercussions more immediate and significant than within the Fed, which faces a pivotal policy meeting next month.