Federal Reserve Vice Chairman Stanley Fischer suggested that Fed Chair Janet Yellen’s remarks on the economy last week indicate the probability of two interest rate hikes this year, beginning in September.

NAFCU Chief Economist and Director of Research Curt Long agreed that chances of a rate hike are increasing for September, but did not agree that two rate hikes are likely.

“While the likelihood of two rate hikes this year remains low, the prospect for a September move is gaining traction,” Long said. “Friday’s employment figures will be telling, and a strong number in the area of 200,000 jobs added would likely presage a rate hike at the committee’s September meeting.”

When asked whether to anticipate a rate hike in September and more than one overall this year, Fischer told CNBC last week: “I think what the chair said today was consistent with answering yes to both of your questions, but these are not things we know until we see the data.”

continue reading »