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27 May 2015
Weaker than expected foreign growth could lead the Fed to defer rate hike – Fed’s Fischer
FXStreet (Mumbai) - The Federal Reserve (Fed) might postpone a rate hike if slower-than-expected foreign growth impacts the US economy, while the Fed still remains in its data-dependent mode, the Fed Vice Chairman Stanley Fischer in his speech in Israel on Tuesday.
Key Quotes from his speech:
"If the US economy is growing very, very slowly we will wait. If the economy is growing faster we will do it quicker,"
“The tightening of US policy will begin only when the US expansion has advanced far enough - when we have seen further improvement in the labor market and when we are reasonably confident that the inflation rate will rise to our 2% goal,”
"If foreign growth is weaker than anticipated, the consequences for the US economy could lead the Fed to remove accommodation more slowly than otherwise."
"The most important contribution that US policymakers can make to the health of the world economy is to keep our own house in order -- and the same goes for all countries."
Key Quotes from his speech:
"If the US economy is growing very, very slowly we will wait. If the economy is growing faster we will do it quicker,"
“The tightening of US policy will begin only when the US expansion has advanced far enough - when we have seen further improvement in the labor market and when we are reasonably confident that the inflation rate will rise to our 2% goal,”
"If foreign growth is weaker than anticipated, the consequences for the US economy could lead the Fed to remove accommodation more slowly than otherwise."
"The most important contribution that US policymakers can make to the health of the world economy is to keep our own house in order -- and the same goes for all countries."