Combined, the speeches from both the influential Fed members were on the opposite ends of the scale. While Fischer noted that inflation needs to pickup from the current levels, he acknowledged a growth in the labour markets, but stressed that inflation must pick up before the Fed can hike rates. His rather dovish views were largely ignored by the markets. The Atlanta Fed Governor on the other hand, maintained his hawkish stance on rate hikes noting that the Fed was close to hiking interest rates with September being the most likely monetary policy action that could decide the fate of the Fed funds rate, which has been near historical lows. The S&P500 closed positive gaining close to 1.31% for the day or about 27.3 points to end the day near 2100.75.
Fed Speeches Give Conflicting Signals
Daily Analysis - 11/08/2015