Fed Vice Chair Fischer: Fed itself does not know when rates will start to rise because policy is data dependent
- Rate path is subject to uncertainty in forecasts
- Fed will wait to raise rates until it believes the economy is strong enough to withstand rate lift off
- Weak growth in Europe is a major concern, can't say if recession or deflation will emerge in Europe. If global growth is much slower than forecast the Fed rate liftoff would come later.
- Do not see inflation on the horizon
- Fed will include currency moves in its calculations if necessary. Recent FX moves reflect underlying policies. Currency depreciations are acceptable as long as it reflects fundamentals and is not part of 'beggar thy neighbor' strategy
- Market interest rates are roughly correct in expectations of Fed action