Fed's Fischer says he expects inflation to pick up
By Greg Robb, MarketWatch
Pace of interest rate hikes is 'OK,' retiring Fed vice chairman says
The current soft patch of inflation will not last, the No.2 official on the U.S. central bank said Wednesday.
"I still believe we will have higher inflation," Fischer said, in an interview on Bloomberg TV.
With unemployment declining, wages will go up "at some stage," Fischer said.
"You have to wait a long time, usually longer than you expected to wait for something to happen, but then, if it is a very basic force... it will show up," Fischer said.
Fischer's remarks dovetail with the views of Fed Chairwoman Janet Yellen, who said she expects inflation to gradually move higher.
Some Fed officials want the central bank to wait until inflation returns to the central bank's 2% target before raising rates again, but Yellen has said this would be "impudent."