Fed interest rate hike is 'an expectation, not a commitment,' vice chair says
The U.S. Federal Reserve will likely raise interest rates this year, but that's "an expectation, not a commitment," vice chairman Stanley Fischer said Sunday, Reuters reports.
"Both the timing of the first rate increase and any subsequent adjustments to the federal funds rate target will depend critically on future developments in the economy," he said at the International Monetary Fund meeting in Peru.
Fischer said the U.S. economy is on track in generating enough new jobs to raise inflation, which means a hike should be on schedule for October or December. But "considerable uncertainties" like slowing global growth and a decline in oil prices could play spoiler.
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In September, the Fed delayed raising interest rates. If there is a hike by the end of 2015, it's likely to be minimal and gradual.
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Julie Kliegman is a freelance writer based in New York. Her work has appeared in BuzzFeed, Vox, Mental Floss, Paste, the Tampa Bay Times and PolitiFact. Her cats can do somersaults.
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