The dual mandate has nearly been achieved and while there is a "quite strong" case for increasing the fed funds rate, the future is uncertain and there is no "preset" plan for monetary policy, Federal Reserve Vice Chair Stanley Fischer said Friday.
"In my view, the Fed appears reasonably close to achieving both the inflation and employment components of its mandate," Fischer said in remarks prepared for delivery at the central bank of Chile conference. "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."
He noted major foreign economies are likely to ease further or remain where they are, creating "considerable policy rate divergence for some time."
"While there will almost inevitably be some bumps along the road," Fischer said he doesn't believe policy normalization will "cause sizable disruptions for our trading partners."
