Vice Chair of the Federal Reserve Stanley Fischer speech on monetary policy

  • "If the recent financial market developments lead to a sustained tightening of financial conditions, they could signal a slowing in the global economy that could affect growth and inflation in the United States ... but we have seen similar periods of volatility in recent years ... that have left little visible imprint on the economy, and it is still early to judge the ramifications."
  • Says 'modest overshoot' of full employment appropriate to be sure as many people as possible get jobs, full-time hours
  • Says greater than full employment could also improve outlook for inflation
  • Too early to tell whether recent market volatility will have any impact on US growth, inflation
  • Similar periods of volatility have left "little imprint" on the overall economy
  • Further drop in oil prices means inflation will remain below target longer than expected
  • Data since December rate hike indicates labor market has continued to improve, and that growth has picked up in the current quarter

via Reuters

On balance, seems slightly hawkish from the big Fisch. Only slightly though .... he isn't frothing at the mouth to hike rates.

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Will be followed by a Q&A

Jan, Stan.

Stan, Jan.