In a speech at the University of Oxford, Federal Reserve Vice Chairman Stanley Fischer on Tuesday said the U.S. economy likely grew at around a 2.5% annual rate in the second quarter, as he repeated the central bank will lift rates once there's further improvement in the labor market and it's "reasonably confident" inflation will move back to 2% over the medium term. He said economic conditions will likely warrant raising the federal funds rate only gradually. Fischer said evidence does not suggest vulnerabilities from excessive leverage pose a significant threat.
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