As traders bet that a June interest rate hike by the Federal Reserve is less likely, Fed Vice Chairman Stanley Fischer offered no indication as to whether a rate hike will come in June or September. Speaking at a meeting of The Economic Club of New York Monday, Fischer only would say it is likely a rate hike is warranted before the end of the year as labor market conditions improve. Fischer added that once interest rates are raised, he did not expect the rates to continuing rising in a straight path up, as occurred during the Fed’s last tightening cycle from 2004 to 2007. Fischer repeated that he does not see the need for explicit forward guidance from the Federal Reserve as monetary policy moves toward normalization.
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