Fed’s Fischer Says Pay Starts to Respond to Job Market
- Says wage gains edging toward level that suppports inflation
- Zero rates unhealthy in theory, means capital not productive
Poole: Fed Will Raise Rates Very Slowly
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Federal Reserve Vice Chairman Stanley Fischer said low interest rates have helped deliver U.S. labor market gains that are feeding through to higher wages.
“With unemployment now below 5 percent we’re beginning to see the fruits of a higher-pressure labor market,” Fischer said Tuesday in response to questions following a speech at Howard University in Washington. “So, we’ve been getting there, and again, it’s pressure keeping, keeping interest rates low, that helps cause this to happen.”