Mar 09, 2016 08:13 AM EST

U.S. Fed Official Confident About U.S. Economy

Stanley Fischer, United States Federal Reserve No. 2 man recently made an optimistic statement about the U.S. economy: the current inflation pick up could move up towards the agency's target of 2 percent.

This statement from Fischer gives a hint of the Fed's viewpoint prior to its committee meeting next week. Interest rates are not about to be raised in that meeting. However, the agency's latest forecast for possible rate increases in 2016 will take the limelight.

"We may well at present be seeing the first stirring of an increase in the inflation rate -- something that we would like to happen," said the vice chairman of the Fed in Washington Monday.

His latest comments have allayed the fears of an impending change in the plans of the Federal Reserve.

The same sentiment was previously echoed early this month by the Fed New York President Bill Dudley.

Top officials of the New York Fed suggested that they would increase the rates four times in 2016. But they are now considering the reverse after oil and stock prices were jolted by the volatility in the last two months.

"I have marked down my growth outlook very modestly," said Dudley in a Hangzhou, China conference on Tuesday. If the current volatility persists, "It could potentially lead to a more significant downgrade to my outlook," he added.

In layman's term, the economy is not about to be stamped with a rate hike this month. March is the likely starting point if the agency really wants to raise rates four times this year.

These kinds of comments from the top officials of the Federal Reserve indicates that the agency is gaining confidence that its two key measures - a strong job market and an inflation rate of only 2 percent will bring the U.S. economy on solid ground.

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