Fed's Fisher (hawkish, FOMC voter): Strongly encouraged the FOMC not to react to the market volatility in September, encouraged by the new wording of the FOMC statement
- Fed needs to be careful not to create believe in a Yellen put- Yellen has proven herself to be neither a hawk nor a dove, but "impressively balanced"
- Very happy the statement dropped the term 'significant' in relation to the description of labor market slack
- The 'considerable time' component has been neutered by the data-dependent nature of the new statement
- The US economy is clearly approaching the 2% inflation level, with higher levels of employment
- The gap between current levels of unemployment and the natural rate of unemployment is less than 1%