Central banks can handle Fed rate hikes: US Fed VP Fischer

The Fed is expected to continue tightening monetary policy this year

Federal Reserve Vice-Chairman Stanley Fischer painted a picture of a brightening global economy that can better manage the spillover of gradual monetary tightening in the US.

“I expect that the Fed’s removal of accommodation will be driven by a continued expansion of the US economy,” Fischer said in the text of a speech he’s slated to give Wednesday in Washington. “Foreign economies are likely to benefit from the developments that induce” the US central bank to tighten, he said.

Fischer added that “most foreign central banks” should be able to respond to US rate hikes with policy actions that lessen the impact