Dallas Fed President, Richard Fisher, speaking to Bloomberg TV said that the US economy is heading in direction of inflation target and in order to prevent any high inflationary pressure, the Fed will do what it has to do.
• 2-3 rate-hikes is roughly in line with what we expect
• Decisions are made based on the economy, not politics
• Looking at cause of slowdown in productivity growth
• Wage growth not far off from expectations
• Wage growth ‘has started happening’
• Reiterates rates hikes to be gradual
• US economy expected to Expand at a ‘reasonable rate’