7 Mar 2016
Fed’s Fischer: Not that far away from inflation target
Federal Reserve Vice Chairman Stanley Fischer said on Monday that US is in the "vicinity of full employment" and the Fed is “not that far away from inflation target” of 2.0%.
“Since the U.S. economy is now below our 2 percent inflation target, and since unemployment is in the vicinity of full employment, it is sometimes argued that the link between unemployment and inflation must have been broken. I don’t believe that. Rather the link has never been very strong, but it exists, and we may well at present be seeing the first stirrings of an increase in the inflation rate --something that we would like to happen”, said Fischer in remarks prepared for delivery at the National Association for Business Economics conference in Washington, D.C.
“Since the U.S. economy is now below our 2 percent inflation target, and since unemployment is in the vicinity of full employment, it is sometimes argued that the link between unemployment and inflation must have been broken. I don’t believe that. Rather the link has never been very strong, but it exists, and we may well at present be seeing the first stirrings of an increase in the inflation rate --something that we would like to happen”, said Fischer in remarks prepared for delivery at the National Association for Business Economics conference in Washington, D.C.