14 Jul 2015
Odds are highest for September rate lift-off – Ex-Fed’s Fisher
FXStreet (Mumbai) - Richard Fisher, former president and chief executive of the Dallas Fed, says the Federal Reserve will likely increase its borrowing costs in September.
Key Quotes:
"The markets, to me, have already discounted a first rate rise and (Fed Chair) Janet Yellen has made it very clear it's being considered and is on the table,"
"I would personally expect that the odds are highest for September. You don't want to do something in December because that's when the markets are so thin and you could have a reaction that is perhaps more exaggerated."
"I can only tell you what I advocated which was: 'Let's do one rate hike and wait and see how it's digested.' We will still have uber-accommodative monetary policy in the U.S."
Fisher also said that monetary policy "takes a great deal of time to work itself into the system."
"I view it as a large tanker at sea that takes a long time to turn, with highly-explosive fuel on board – these excess reserves they've piled up on the Federal Reserve's balance sheet of $2.65 trillion."
Key Quotes:
"The markets, to me, have already discounted a first rate rise and (Fed Chair) Janet Yellen has made it very clear it's being considered and is on the table,"
"I would personally expect that the odds are highest for September. You don't want to do something in December because that's when the markets are so thin and you could have a reaction that is perhaps more exaggerated."
"I can only tell you what I advocated which was: 'Let's do one rate hike and wait and see how it's digested.' We will still have uber-accommodative monetary policy in the U.S."
Fisher also said that monetary policy "takes a great deal of time to work itself into the system."
"I view it as a large tanker at sea that takes a long time to turn, with highly-explosive fuel on board – these excess reserves they've piled up on the Federal Reserve's balance sheet of $2.65 trillion."