NEW YORK (AP) - Federal Reserve Vice Chairman Stanley Fischer says he expects the Fed to start raising interest rates sometime this year. Once that happens, though, rates won't likely move in any predictable pattern, he added.
Fischer's remarks Monday built on a message the Fed sent last week after its latest policy meeting ended. The central bank opened the door to a rate increase by no longer saying it would be "patient" in starting to raise rates. That change was viewed as a sign that the Fed could raise rates as early as June.
At the same time, the Fed signaled that it was in no hurry: It noted that it needed to see the job market improve further and for inflation to rise above extremely low levels. Many economists interpreted that to mean a rate increase was more likely later in the year at the earliest.
The Fed has kept its key short-term rate near zero since 2008 to try to bolster the economy after a devastating financial crisis and recession.
"An increase in the target federal funds range likely will be warranted before the end of the year," Fischer said in a speech to the Economic Club of New York.
He also stressed the importance of looking beyond when the Fed begins raising rates. After its first increase, the Fed may adjust its key rate either up or down, depending on the economy's performance, the vice chairman said.
US stocks open week with small loss
NEW YORK (AP) - A late turn pulled the stock market to a loss on Monday, as major indexes wavered following a strong run last week.
Major indexes started higher in morning trading, settled into an afternoon lull, then dipped down in the last 10 minutes of trading.
The S&P 500 fell 3.68 points, or 0.2 percent, to close at 2,104.42.
The Dow Jones industrial average lost 11.61 points, or 0.1 percent, to 18,116.04 while the Nasdaq composite slipped 15.44 points, or 0.3 percent, to 5,010.97.