Fed's Fischer: Rate Hike Likely Warranted This Year

A rate hike is likely to be warranted this year, said Federal Reserve Vice Chairman Stanley Fischer on Monday. In a speech to the Economic Club of New York, Fischer said the first hike would be appropriate when there's "further improvement in the labor market and we are reasonably confident that inflation will move to our 2% objective over the medium term." Investors should not expect steady rate hikes after the first move, the Fed vice chairman added. Inevitably, the economy will encounter shocks, either positive or negative, and policy makers will have to respond to at least some of them, he said.