Fed's Stanley Fischer speaking on CNBC
- Uncertainty has risen a bit
- The levels of uncertainty have risen on North Korea and China
- It's hard to know how significant the Chinese developments are
- Fed will react to incoming events
- Fed does not know enough at the moment to know how many hikes there will be in 2016
- The Fed want's to meet its objectives without making "big messes" in the market
- As long as inflation remains below 2% there will be a need for accommodation
- The Fed can't be led by what markets think
- Fed believes the market is underestimating the path of hikes
That last comment is hawkish but the rest is pretty much standard fare
- Doesn't see Fed on a course to using negative rates
- As oil and the world stabilises the inflation trend will rise
- Oil decline and the appreciation of the dollar won't go on forever
Not a believer in the "trend is your friend" motto then
