- Stanley Fischer, Federal Reserve Vice Chairman
The Fed officials become more and more confident in the US economy that takes them closer to enter a critical phase in its seven-year combat with the financial crisis by lifting interest rates. However, Fed Vice Chairman Stanley Fischer reiterated the view that the timing of the first rate hike still depends on broader economic data. If the labour market continues to improve and there are some signs of inflation starting to rise, then policy makers will, consequently, normalize the Fed's monetary policy by increasing interest rates, Fischer said.
The next policy meeting of the FOMC is scheduled on 16-17 December, and officials are seen to retain their "considerable time" pledge, having maintained the rate commitment in place since their March meeting. Fed officials in October ended the central bank's five-year asset-buying programme, a vote of confidence in the nation's economy that has been creating jobs at a steady pace for months. However, they also pledged to keep short-term interest rates near zero for a "considerable time," a nod to subdued inflation and slowdown abroad. Both Fischer and New York Fed President William C. Dudley on Monday stressed the benefits of falling oil prices for the American economy, playing down the risk that the decline will push inflation even further below the 2% goal.
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