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3/28/2017, 7:46 PM (Source: TeleTrader)
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Fischer: Fed is watching fiscal policy 'very closely'

United States Federal Reserve's policymaking committee has included a "small fiscal stimulus" in its economic projections, the bank's Vice-Chairman Stanley Fischer said on Tuesday, adding that the panel is monitoring fiscal policy developments "very closely."

Speaking in an interview with CNBC, Fischer said he would back two more interest rate hikes by the end of 2017, as that seems "about right," noting that the wait-and-see policy has been appropriate for the Fed. However, the debate on healthcare in the wake of the last week's collapse of the Republican-led bill could change Fischer's "internal calculus," the vice-chair stated.

President of Dallas Fed Robert Kaplan, who is a voting member of the Federal Open Market Committee this year, also spoke today. He argued for a "patient" and "gradual" approach to raising interest rates in the US, adding that increases in the federal fund rate are catching up a bit to the move in the yield curve.

Breaking the News / IB