Most popular Fisher predicts the impact of the Fed

2022-09-23
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Fisher predicted the impact of the Fed's interest rate hike

Stanley Fischer, vice chairman of the Federal Reserve, predicted that the Fed would only "gradually raise" interest rates. At present, it is difficult to judge the impact of financial market fluctuations on the FOMC policy meeting in March, but he is worried that such fluctuations may affect U.S. economic growth

Stanley Fischer, vice chairman of the Federal Reserve, predicts that the Federal Reserve will only gradually raise interest rates in the next eight years. At present, it is difficult to judge the impact of financial market fluctuations on the FOMC policy meeting in March, but he is worried that such fluctuations may affect U.S. economic growth

in a speech at the meeting of the Foreign Relations Committee on Monday, Fischer said that the Fed's decision to raise interest rates in December last year, the large electronic pull experimental machine based on the labor market is based on sensors to test the improvement of the pull and the Committee believes that inflation will rise to 2% in the medium term. However, Fed officials expect that monetary policy will remain loose after a small increase in interest rates in December. He pointed out that the federal funds rate will only increase gradually, and in the long run, it will remain lower than expected for a period of time in the future. He said that the Federal Reserve would appropriately adjust its monetary policy according to economic and financial conditions to create the best conditions consistent with employment and inflation targets

Fisher pointed out that the market's concerns about the global economic outlook, especially China's ongoing structural adjustment and the decline in crude oil and other commodity prices, have intensified, triggering fluctuations in the global asset market. He said that the amount of aluminum used by single cars in Europe and the United States has reached 150kg, and it is difficult for the Federal Reserve to judge how this fluctuation will affect the FOMC policy meeting held in March. If the development of the situation leads to the continuous tightening of the financial situation, it may indicate that the global economy is slowing down, and then affect the U.S. economic growth and inflation

According to the MarketWatch article, Fisher's statement means that the market's expectation that the Fed will not raise interest rates this year may be correct

Last month, Fisher seemed to be more hawkish. In an interview with CNBC, he said that the market's expectation of the Fed raising interest rates twice this year was too low. In contrast, he believes that the three to four interest rate hikes predicted by Fed officials are roughly correct

if someone asks whether the Federal Reserve will raise interest rates in March, Fisher said, we don't know at all. He added that the world is uncertain, and all monetary policymakers can be sure that what happens in the future is often different from what we currently expect

the trading situation of the federal funds interest rate futures market shows that the market expects the Federal Reserve to increase the travel limited interest rate only once in September this year

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