Someone is not worried of market moves!

US Federal Reserve vice chair in a speech at energy conference sounded more hawkish than the FED chair Janet Yellen sounded in congress.

Key commentaries 

• According to Mr. Fischer market turmoil of January, may not end up leaving a major impact on US economy, judging by previous episodes of volatility.
• However he suggested, it is still too soon to judge the impact of oil price drop over inflation and turmoil in China. So the policymakers are still undecided over actions in next meeting. Chair Yellen previously suggested March SEP would be vital for assessing the economy and deciding over future policy path.
   
• Mr. Fischer presented an upbeat picture of US economy pointing to the facts that Job gains averaged about 230,000 for past three months, wage gain touched 2.5% and core inflation above 2%.
• He do warned that recent financial market turmoil has led to tightening financial conditions and if sustains might derail global and US growth as well as inflation. However, he also pointed such turmoil hasn't exerted much influence over economy in the past.
• Mr. Fischer highlighted, without the impact of lower oil price and lower import prices, US inflation would have reached 2% threshold. That is coupled with lower unemployment is worrying FED as US move to high employment, it could lead to high inflation and might lead to abrupt tightening.

Mr. Fischer's comments should brighten up the mood of the hawks in the market. If data remains non-deteriorating and market turmoil passes away, a hike by FED may very well be on the menu.

Dollar index is currently trading at 97.5, flat for the day.