FXStreet (Bali) – After the much-awaited Kansas City Federal Reserve’s annual retreat in Jackson Hole, Wyoming, traders have been left with a sense of ‘business as usual for the Fed, with its tightening vision unaltered, despite increased market volatility in recent weeks.
Federal Reserve Vice Chairman Stanley Fischer, said Fed will raise at a gradual pace, while considering foreign economies in policy decisions, adding that meeting policy goals for domestic economy is good for the global economy.
On inflation, Fischer said: “There is good reason to believe that inflation will move higher as the forces holding down inflation dissipate further,” he said Saturday on a panel on inflation dynamics.”
Additional headlines from Fischer
Fed considers unemployment rates of older workers and those who are part time for economic reasons, more closely than usual
After Chinese events Fed is watching for any possible economic effects more closely than normal
There’s a good reason to believe that inflation will rise
Some USD related effects are likely to be fading already
Pressure from oil and labour market slack are also diminishing
Dollar strength could hold back growth through 2016 and possibly into 2017
Fed should not wait until inflation is at target before tightening
Stable inflation expectations have prevented prices from falling further
Rate path matters more than the timing of the first hike
Fed needs to proceed cautiously with normalisation
(Market News Provided by FXstreet)