Fed's Fischer: Inflation is going in the right direction

Author: Ryan Littlestone | Category: Central Banks

Fed's Fischer speaking to Bloomberg TV

  • Expects the labour market to strengthen further and inflation moving towards the 2% target
  • Policy is not based on political pressure
  • Policy is still accommodative
  • Growth has started happening
  • Expects gradual rate hikes, possibly years to reach the equilibrium level
  • We are currently around full US employment
  • US economy is one of the most dynamic in the world
Headline inflation is above 2.0%, so we're at the Fed's target but they like to look at PCE, which is currently running at 1.6% (core at 1.7%).