The Federal Reserve was all set for mid-2015. Is that still true?


Some quotes from the interview show quite clearly that Fisher was sending a strong “message”:

  • The slowdown in demand growth overseas will have very little effect on the US economy.
  • US interest rates are far below normal.
  • The likely period of low US inflation in coming months will not deter the Fed from raising rates.
  • This would only change if inflation “is really heading south”.
  • The most impressive feature of the US recovery is the continuing decline in unemployment.

Six or seven weeks later, is that interview still pertinent? At that point oil prices stood at close to USD 70 and now they stand below 50. Mostly as a reflection of low global AD (here).The global scenario is changing quickly, and not for the better. So maybe Fischer is not so sure anymore.

PS- When Fischer was Governor of the Bank of Israel he was very “lucky“. Has his “luck” run out?


About the Author

Ana Fuentes
Columnist for El País and a contributor to SER (Sociedad Española de Radiodifusión), was the first editor-in-chief of The Corner. Currently based in Madrid, she has been a correspondent in New York, Beijing and Paris for several international media outlets such as Prisa Radio, Radio Netherlands or CNN en español. Ana holds a degree in Journalism from the Complutense University in Madrid and the Sorbonne University in Paris, and a Master's in Journalism from Spanish newspaper El País.

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