Fischer: US rate rise should be manageable for emerging markets

Vice Chairman Stanley Fischer has said the Fed Reserve should be cognizant of the impact raising rates will have on emerging markets, however, he believes the normalization process should be manageable. "In the normalizing of its policy, just as when loosening policy, the Federal Reserve will take account of how its actions affect the global economy. The actual raising of policy rates could trigger further bouts of volatility, but my best estimate is that the normalization of our policy should prove manageable for the emerging market economies." Fischer gave no time frame for raising rates in the text of his remarks, but made it clear that higher rates are coming. "Markets should not be greatly surprised by either the timing or the pace of normalization," he said, reiterating that the Fed will not raise rates until the labor market has improved further and policymakers are confident inflation is headed back to the Fed's 2 percent goal. (VIEW LINK)

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.