Fed getting close to reaching goals, says Vice Chairman, Stanley Fischer

NEW DELHI: Federal Reserve vice chairman Stanley Fischer said the central bank has almost reached its goals for maximum employment and price stability, strengthening the case for raising interest rates.

“The Fed appears reasonably close to achieving both the inflation and employment components of its mandate,“ Fischer said in the text of remarks to be delivered at a conference at the Central Bank of Chile. “ Accordingly , the case for removing accommodation gradually is quite strong, keeping in mind that the future is uncertain and that monetary policy is not on a preset course.“

The Fed has lifted its main interest rate just once since cutting it to nearzero in 2008, in December 2015. Policy makers have signaled that a second increase is imminent as employers continue to hire, wages creep up and price pressures climb, and federal funds rate pricing suggests that markets anticipate an hike at the Fed's December 13-14 meeting. That would set the central bank apart from its global counterparts, which are still in easing mode.