Stimulus still needed: Fed nominee Fischer

Stanley Fischer, nominated as vice chair of the Federal Reserve, addresses Wall Street Journal CEO Council on November 19, 2013 in Washington, DCStanley Fischer, nominated as vice chair of the Federal Reserve, said Wednesday that the US economy still needs stimulus to help bring down stubbornly high unemployment. In a prepared statement for a confirmation hearing scheduled at the Senate on Thursday, Fischer lined up behind new Fed Chair Janet Yellen on monetary policy, saying inflation remained tame and the economy had not returned to normal in the wake of the deep 2007-2009 recession. At 6.7 percent, the unemployment rate remains too high, and the rate of inflation has been, and is expected to remain, somewhat below the Federal Reserve’s target of 2 percent,” he said in the statement. “At present, achievement of both maximum employment and price stability requires the continuation of an expansionary monetary policy — even though the degree of expansion is being gradually and cautiously cut back.”

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