US Fed vice-charman Stanley Fischer out on Reuters speaking to a fringe meeting at the IMF jolly in Peru
- economy continues growing but with considerable uncertainty due to global economic and financial conditions
- shifting expectations about the Fed's policy plans could itself be a source of volatility but US officials can't communicate more than facts warrant
The buck stops where exactly Stan?
- Fed decision to delay rate hike is Sept meant to allow more time to assess developments globally and particularly in China
- does not anticipate recent events will have a significant effect on Fed policy, but notes "disappointing" recent jobs report and slow export growth
- slowing rate of jobs growth still adequate to absorb remaining slack in US labour market
- drag of low oil prices on US investment appears to be waning
- exports may be restrained by strong US dollar for "somewhat longer"
"Both the timing of the first rate increase and any subsequent adjustments to the federal funds rate target will depend critically on future developments in the economy"
The guessing game continues. For them, and us.
Adam had other Fischer comments from Friday here
Fed vice chairman Fischer - Rates going up. Just not sure when.
