Vice Chair Stanley Fischer already rattled markets on Friday. He is now giving an interview on Bloomberg TV. with Tom Keene.
Here are some highlights:
- Rate path depends on the economy.
- The work of the central bank is never done.
- The work of a central bank is never done.
- No pessimism about employment
- A problem with growth and especially productivity growth.
- The world is increasingly interconnected. We all depend on each other.
- We are the most important of all central banks.
- We are sensitive to what’s going on with negative rates.
- Not intending to go in the direction of negative rates.
- Central banks are content with negative rates, perhaps with the exception of Japan. “They seem to work”.
- Negative rates work up to a certain point before they become counter-productive.
- In general, the lower the interest rate, the better for investors, and that’s where a potential disappointment comes from.
- We’re growing at around 2%.
- Dollar is not fundamentally an issue
- Productivity is a problem.
- We have seen the dollar appreciating and the employment has continued going towards full employment
- Dollar strength has pushed inflation lower.
- Changes in fiscal policy will come in 2017 and 2018 but uncertainty is high.
- The people within the system are thinking in similar lines
The interview ends without any big market movements or any surprising statements. The question of September vs. December was not asked. We remain data-dependent, and that comes on Friday.
More: Is the Fed nearing a hike? NFP is a make or break moment
Share
