US Fed Vice-Chairman Fischer Job Market 'Very Close' to Full Strength
August 30, 16(IDEX Online News) – In comments that will likely be seen as presaging interest rate increases by the Federal Reserve, Fed Vice Chairman Stanley Fischer said the U.S. job market is nearly at full strength.
The pace of rate increases will depend on how well the economy is doing, he said in an interview with Bloomberg TV, while not commenting on the timing of the next Fed rate hike. US employment "is very close to full employment".
Fed Chair Janet Yellen said on Friday she thought the case had grown stronger in recent months for an interest rate increase, remarks that Fischer later that day said were consistent with a view that the U.S. central bank might raise rates at its next policy meeting in September.
Asked about the dollar on Tuesday, Fischer said the currency's strength affected U.S. inflation and company profits but improvements in the labor market showed the economy had withstood this headwind.
The Fed has signaled since March it would lift rates twice this year, but investors have been skeptical.
The U.S. Labor Department's monthly employment report on Friday is expected to show the economy added 180,000 jobs in August, according to the median forecast in a Reuters poll.