Investing.com - Federal Reserve Vice Chair Stanley Fischer on Sunday noted the strong gains of U.S. labor market under the current economic expansion that is close to the Fed's goals of maximum employment and price stability, while declining to comment on the implication for interest rates.
"Employment has increased impressively over the past six years since its low point in early 2010," Fischer said in a speech prepared for an Aspen Institute conference in Colorado.
"And the unemployment rate has hovered near 5% since August of last year, close to most estimates of the full-employment rate of unemployment," he said.
Still, he noted the economy "has done less well" in reaching the Fed's explicit 2% inflation target, he continued, with headline PCE inflation less than 1% over the 12 months ending in June, but he said core PCE inflation, at 1.6% in June, "is within hailing distance of 2% -- and the core consumer price index inflation rate is currently above 2%."
"So we are close to our targets," said Fischer, who as vice chair of the board votes each year on the rate-setting Federal Open Market Committee.
His remarks came as as other FOMC members, and non-voters such as San Francisco Fed President John Williams have been trying to convince markets at least one more rate hike this year is likely, and an increase as early as the September meeting.