Fischer: the #Fed must make financial stability an explicit focus of policy
SAN FRANCISCO/ NEW YORK (Reuters) – Stanley Fischer, U.S. President Barack Obama’s pick to be the Federal Reserve’s next vice chair, called on Wednesday for financial stability to be an “explicit focus” of Fed policy, alongside the congressionally mandated goals of price stability and maximum employment.
“The Great Recession has driven home the lesson that the Fed has not only to fulfill its dual mandate, but also to contribute its part to the maintenance of the stability of the financial system,” Fischer said in written testimony released on Wednesday for a Senate confirmation hearing set for Thursday. “Almost always, these goals are complementary. But each of them must be an explicit focus of Fed policy.”
A third mandate for the Fed? Vice Chair nominee Fischer wants financial stability to be an explicit policy focus. for the US central bank
SAN FRANCISCO/NEW YORK, March 12 (Reuters) – Janet Yellen
has a message to markets: the Federal Reserve will keep interest
rates low for a while yet and, when it does begin to tighten
monetary policy, it will do so only slowly.
For now, the public has zeroed in on when the U.S. central
bank might finally raise rates after more than five years near
zero. But that tells only half the story: just as important for
American families and businesses is how quickly the Fed will
hike borrowing costs, and how high.