Fed Vice Chair Says CB on Right Path

The Federal Reserve expected the current improvement in U.S. inflation and employment and, while monetary policy remains accommodative, it is headed on the right path in removing that stimulus, Fed Vice Chair Stanley Fischer said on Thursday.

The Fed expected “to be moving closer to the 2-percent inflation rate and that the labor market would continue to strengthen. If those two things happen we’ll be on the (policy) path that we more or less expected,” he said on Bloomberg radio.

Monetary policy is “in the land of accommodative,” Fischer said, adding: “If (inflation) is significantly above (target) you begin to worry and you begin to act.”

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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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