Fed’s Fisher Says US Job Market Near Full Employment

The U.S. job market is nearly at full strength and the pace of interest rate increases by the Federal Reserve will depend on how well the economy is doing, Fed Vice Chairman Stanley Fischer said on Tuesday.

In an interview with Bloomberg TV, Fischer did not comment on the timing of the next Fed rate hike but said “we choose the pace on basis of data,” and that U.S. “employment is very close to full employment.”

Fed Chair Janet Yellen said on Friday she thought the case had grown stronger in recent months for an interest rate increase, remarks that Fischer later that day said were consistent with a view that the U.S. central bank might raise rates at its next policy meeting in September.

Asked about the dollar on Tuesday, Fischer said the currency’s strength affected U.S. inflation and company profits but improvements in the labor market showed the economy had withstood this headwind.

The Fed has signaled since March it would lift rates twice this year, but investors have been skeptical.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza