Fed Fisher Joins March Rate Hike Chorus

Federal Reserve policymakers who have recently signaled a pending U.S. interest rate rise have been acknowledging growing confidence and aggregate demand in the economy and stock market since the U.S. election, the Fed’s vice chairman said on Friday.



“If there has been a conscious effort (to raise expectations for a rate hike) I’m about to join it,” Stanley Fischer told an economists’ forum, when asked about comments by other Fed officials this past week that have boosted market odds of a March rate hike.

“What my colleagues have been saying is correct,” added Fischer. “If you look at what’s been happening to the economy since November 8 (election) … and to the asset markets, and if you take into account the operation of what people of my age call ‘animal spirits’ … you will realize that there has been a substantial wealth effect in this economy.”

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