WASHINGTON, D.C., 2 June 2015 – Speaking from a conference in Israel, Vice Chairman Stanley Fischer stated that the Federal Reserve will consider global economic implications when raising interest rates. "The U.S. economy and the economies of the rest of the world have important feedback effects on each other," Fischer said. "To make coherent policy choices, we have to take these feedback effects into account."
Fischer gave no time frame for raising rates in the text of his remarks, but made it clear that higher rates are coming. "Markets should not be greatly surprised by either the timing or the pace of normalization," he said. "The actual raising of policy rates could trigger further bouts of volatility, but my best estimate is that the normalization of our policy should prove manageable for the emerging market economies."
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