Fed's Fischer: difficult to judge implications of global volatility

It isn't clear how the recent global market volatility and uncertain economic outlook affect the U.S. economy, Stanley Fischer, vice chairman of the Federal Reserve, said on Monday.

"At this point, it is difficult to judge the likely implications of this volatility," Fischer said at an event held by the Council on Foreign Relations, referring to the recent global market volatility.

"If these developments lead to a persistent tightening of financial conditions, they could signal a slowing in the global economy that could affect growth and inflation in the United States," he added. "But we have seen similar period of volatility in recent years have left little permanent imprint on the economy."

The Federal Reserve last week kept its benchmark interest rate unchanged, signaling concern that global economic and financial market developments could derail the U.S. economy.

Many analysts said the Fed will have more time to assess the implications of global developments on the U.S. economy.

Fischer emphasized that he can't answer questions about what the Fed will do at the next meeting in March, and reiterated that the future actions of the Fed will be data dependent. Endit