Fed’s Fisher Says 4 Hikes in Ballpark for 2016

Federal Reserve Vice Chairman Stanley Fischer said on Wednesday that four rate hikes by the U.S. central bank this year is close to his expectations, but added that global uncertainty could still veer this path off course.

“My view is that those numbers are in the ballpark,” Fischer, the Fed’s second in command, said in an interview with broadcaster CNBC.

The Fed raised interest rates last month for the first time in nearly a decade.

His view is in step with the median of Fed officials’ latest forecasts, which is for four rate hikes this year.

However, Fischer said that uncertainty had risen due to economic news out of China and geopolitical events such as North Korea saying it has tested a miniaturized hydrogen bomb.

“We have to react to incoming events and we will react to them,” Fischer added. “We don’t know enough now to know how many [rate hikes in 2016] there will be.”

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