Fed's Fischer watching
how quickly Brexit unfolds: CNBC
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[July 02, 2016]
WASHINGTON (Reuters) - The U.S.
economy has shown signs of improvement in recent weeks but the Federal
Reserve expects it will take some time before it can assess the impact
of Britain's vote to leave the European Union, Fed Vice Chair Stanley
Fischer said on Friday.
A June 3 report showing a sharp slowdown in hiring during May and
the risks around Britain's June 23 Brexit vote have raised concerns
at the Fed over whether the U.S. economy was ready for more interest
More recent economic data has eased some of those concerns, but
Fischer gave no steer on when the Fed might raise rates.
"As we consider the effects of Brexit, we've got to put that effect
on the U.S. together with what else is going on in the U.S.
economy," he told CNBC in an interview. "Most of the incoming data
look good now."
But the Fed will have a hard time assessing the impact of Britain's
vote because the exit negotiations could take a long time and other
countries might also seek to leave the EU.
"When it's something that is going to go on and unwind over the
course of time, it's much harder," Fischer said in an interview with
U.S. network CNBC.
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Federal Reserve Vice Chair Stanley Fischer addresses The Economic
Club of New York in New York March 23, 2015. REUTERS/Brendan
Fischer said the Fed would like to know "how quickly the British economy reaches
its new configuration with new trade... And then there are the concerns about
implications of the British example for other countries."
(Reporting by Jason Lange and Howard Schneider; Editing by Chizu Nomiyama and
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