FXStreet (Córdoba) – Federal Reserve Vice Chairman Stanley Fischer said on Monday the US labor market is nearly back to full health, but that inflation remains weak.
“The data have to drive us, and we have to ask ourselves, where are we? And we’re in a situation with very low inflation—nearly full employment, but very low inflation”, Fischer said.
Fischer said Monday that a large part of inflation’s current low trajectory is “temporary” and “it has to do with the decline in the price of oil; it has to do with the decline in the price of raw materials. These are things which will stabilize at some point, so we’re not going to be as low as we are now forever and we need to be looking ahead as we go.”
The Fed’s preferred gauge of inflation, the PCE price index, rose 0.3% in June from a year earlier, and prices excluding food and energy climbed 1.3%, still below the Fed’s 2% target.
(Market News Provided by FXstreet)