Fed's Fischer comments on the economy and monetary policy:
- Difficult to judge impact of volatility at this point
- Inflation will likely remain low for 'somewhat longer'
- Similar volatility in the past left little imprint
- Doesn't know what volatility means for March FOMC
- Expects inflation to rise to 2% over the medium term
- Modest overshoot of full employment goal appropriate
- Sees benefit of keeping large Fed balance sheet for some time
- Watching for persistent financial conditions tightening
- Oil and dollar moves through Dec-Jan suggest inflation could remain lower than thought
- Fischer speaking in New York
The last time Fischer spoke -- on January 6 -- he said the market view of where rates will be at year-end was too low. He said 4 rate hikes this year was in the right ballpark.
He doesn't speak about rate hikes here and that's a mild dovish signal but his overall message is to wait and see.
Watch for more comments from Fischer later, as he's slated to appear on Bloomberg.