But about 71 per cent of 62 economists surveyed by the Wall Street Journal this month believed the Fed will wait until December to raise rates.
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Bank of Japan Governor Haruhiko Kuroda told the Jackson Hole symposium that there was no doubt the central bank had “ample space” for taking additional easing measures.
Fischer said on Bloomberg TV early Tuesday that it’s impossible to say whether the next interest rate hike would be “one and done”.
On Friday, he said Fed Chairwoman Janet Yellen’s comments were “consistent” with possibly two rate hikes this year, leading rate-hike expectations to soar and sparking a sharp Treasury selloff that pushed yields to a two-month high. The dollar index, which tracks the greenback against a basket of six rivals, was up 0.2 percent at 95.785.
She did not indicate when the USA central bank might raise rates, and euro zone bond yields closed lower on Friday. The S&P 500 .SPX closed up 11.34 points, or 0.52 percent, at 2,180.38. Markets in the United Kingdom are closed for a holiday.
The odds of a hike in September rose to 33 per cent following the comments, from 21 per cent on Thursday, according to CME Group’s FedWatch tool.
The dollar index.DXY rose 0.11 percent, trading at more than a two-week high, while oil prices slipped more than 1.5 percent. The dollar rose to 101.98 yen from 101.86 yen late Friday.
West Texas Intermediate fell 1.5 percent to $46.92 and Brent shed 1.4 percent to $49.24.
Fischer said on Friday that an interest rate hike could come in September and that the Fed’s decision would depend on upcoming economic reports including surveys due this week on employment and the manufacturing and service sectors. But earlier in the session, it rose to 95.608, its highest since August 16. That reinforced bets of a rate rise soon, even as other data showed US inflation remained subdued.
USA futures point to a +0.1% opening loss for the S&P 500, following Wall Street’s worst week since the end of June.
Global factory activity surveys will also be released on Thursday. US gold futures for December delivery settled up 0.09 percent at $1,327.10.
The dollar received strong support from the improved expectation of a hike this year.
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“On Friday afternoon, gold initially reacted to the speech by Fed Chairwoman Yellen at Jackson Hole by surging above $1,340, but was unable to sustain this level, and ended trading in negative territory”, Commerzbank said. Germany’s DAX was 1.2% lower, while the blue-chip Euro Stoxx 50 was down 0.6%.
