The Fed: Fed’s Fischer says first quarter doldrums only temporary and rate hikes can proceed

Fed Vice Chairman Stanley Fischer (R) speaks with Bank of France Governor Francois Villeroy de Galhau last year.

Weak growth in the U.S. economy in the first quarter will likely be temporary and interest-rate hikes should be able to proceed as planned, Federal Reserve Vice Chairman Stanley Fischer said Friday.

“Our tendency is to think this [weakness in the first quarter] is a transitory change and that growth will be around forecasts in the second quarter and the rest of the year,” Fischer said in an interview on CNBC.

Economists surveyed by MarketWatch expect growth to have decelerated to a 1% annual rate in the first quarter.

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