Fed Vice Chairman Stanley Fischer said Fed officials ” simply do not know” what course of action they will take at their next meeting three weeks from now, and it is too early to assess the impact of market volatility.
“If the recent financial market developments lead to a sustained tightening of financial conditions, they could signal a slowing in the global economy that could affect growth and inflation in the United States,” Fischer said.
“But we have seen similar periods of volatility in recent years–including in the second half of 2011–that have left little visible imprint on the economy, and it is still early to judge the ramifications of the increased market volatility of the first seven weeks of 2016.”
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