Federal Reserve Vice Chairman Stanley Fischer wants investors to fasten their seatbelts. Fischer said on Monday in New York that raising interest rates “likely will be warranted before the end of the year” and cautioned policy wouldn’t be uniform or predictable.
“Whether it’s going to be June or September, or some later date, or some date in between, will depend on the data that appear between now and then,” he told the Economic Club of New York. The dollar extended the biggest weekly decline in three years after his remarks, as investors bet the U.S. central bank would take its time in tightening policy.
“He wanted to emphasize that we’re in a new data-dependent regime,” said Dana Saporta, U.S. economist at Credit Suisse Group AG in New York. “The Fed isn’t going to spell out its long term plan, and the path to normalization isn’t going to be smooth.”
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