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Tags: federal reserve | fischer | rate | hikes

Fed's Fischer: 4 Rate Hikes in 2016 'in the Ballpark'

Fed's Fischer: 4 Rate Hikes in 2016 'in the Ballpark'
Federal Reserve Vice Chairman Stanley Fischer (AP)

By    |   Wednesday, 06 January 2016 10:09 AM

Federal Reserve Vice Chairman Stanley Fischer said that the median of policy maker forecasts predicting four quarter-percentage point interest-rate increases in 2016 was “in the ballpark” though it wasn’t possible to know the exact number now.

Fischer, the Fed's second in command, cautioned that global uncertainty could still veer this path off course. His view is in step with the median of Fed officials' latest forecasts, which is for four rate hikes this year.

“The reason we meet eight times a year is because things happen, and as they happen you want to adjust your policy,” Fischer said in an interview Wednesday on CNBC.

However, Fischer said that uncertainty had risen due to economic news out of China and geopolitical events such as North Korea saying it has tested a miniaturized hydrogen bomb.

"We have to react to incoming events and we will react to them," Fischer added. "We don't know enough now to know how many [rate hikes in 2016] there will be."

Even with rates going up, he said the Fed will remain somewhat accommodative while inflation remains below 2 percent. "Those changes are rather subtle."

While North Korea's claim Wednesday to have successfully tested a hydrogen bomb has increased uncertainty in financial markets, Fischer said he's unsure of the long-term impact.

Fischer said concerns about a slowdown in China's economy are perhaps more significant. "For the United States, direct links with China are less important than China's role in the world."

Fischer’s remarks come three weeks after the Fed raised interest rates for the first time in almost a decade. Policy makers said at the time they would continue to monitor real and expected progress on inflation, which remains below their 2 percent target, as they contemplate when to raise again.

Minutes of the Dec. 15-16 Federal Open Market Committee meeting are scheduled to be released at 2 p.m. in Washington.

(Newsmax wire services contributed to this report).

© 2021 Newsmax Finance. All rights reserved.


Personal-Finance
Federal Reserve Vice Chairman Stanley Fischer said that the median of policy maker forecasts predicting four quarter-percentage point interest-rate increases in 2016 was "in the ballpark" though it wasn't possible to know the exact number now.
federal reserve, fischer, rate, hikes
321
2016-09-06
Wednesday, 06 January 2016 10:09 AM
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