Fischer answering questions
- Low rates make Fed policy more difficult, there's no question about that
- Post-crisis Fed policies have helped recovery
- We're very close to inflation and employment targets
- I would be very reluctant to raise Fed inflation goal at this moment
- We're not in deep trouble on monetary policy at the moment
- Having a scheduled timeline where the framework is reviewed is something we may review
- There is a point at which rate cuts can cause a perverse effect
- Attempts at overshooting targets show dangers
- Doesn't see danger in small full-employment overshoot, you could go over 'by a couple of tenths' without danger
- If we were growing faster, maybe we'd be feeling better
- Once at employment and inflation targets, Fed focus will be on growth
He said raising the target to 3% because you can't get 2% doesn't make any sense to him. Furthermore, changing the target "when you're so close" undermines the whole framework.
Markets have hardly moved since Fischer began.
