Fis­cher Sees Price Pres­sure As Un­em­ploy­ment De­clines

The Bond Buyer - - Market News -

Fed­eral Re­serve Vice Chair­man Stan­ley Fis­cher, who leaves of­fice later this month, con­tin­ues to ex­pect a tight­en­ing U.S. la­bor mar­ket to lift wages and prices even though the process can take longer than an­tic­i­pated.

“I still be­lieve we will have higher in­fla­tion,” Fis­cher said Wed­nes­day in an in­ter­view on Bloomberg Tele­vi­sion. “The ba­sic mech­a­nism here is un­em­ploy­ment is de­clin­ing all the time, wages will start go­ing up at some stage.”

“The ex­pe­ri­ence many of us have, in­clud­ing my­self, is you have to wait a long time — usu­ally longer than you ex­pected to wait — for some­thing to hap­pen,” said Fis­cher. “But then, if it’s a very ba­sic force, namely in­creas­ing em­ploy­ment, in­creas­ing wages, it’ll show up.”

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