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CNBC Exclusive: CNBC Excerpts: Federal Reserve Vice Chairman Stanley Fischer Speaks with CNBC's Steve Liesman on "Closing Bell" Today

WHEN: Today, Friday, February 27th

WHERE: CNBC's "Closing Bell"

Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Stanley Fischer on CNBC's "Closing Bell" (M-F, 3PM-5PM ET) today. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000357976

All references must be sourced to CNBC.

FISCHER ON STRONG ECONOMY

WE ARE STRONGER AT THE MOMENT, AND IT'S BETTER THAT WE'RE STRONGER, AND WE'RE GOING TO STAY STRONGER UNLESS SOMETHING MIRACULOUS HAPPENS IN OTHER COUNTRIES IN THE NEXT COUPLE OF YEARS. AND THAT'S OKAY. SO THE DOLLAR IS STRONG IS A SIGN OF THE STRENGTH OF OUR ECONOMY.

FISCHER ON DEFENDING OURSELVES

WE'LL HAVE TO CONTINUE TO DEFEND OURSELVES. WE'LL HAVE TO CONTINUE TO EXPLAIN OURSELVES. WE ARE BOUND – WE'RE ACCOUNTABLE TO THE CONGRESS.

FISCHER ON CONGRESS

I'M STRUCK BY HOW BOUND WE ARE TO FULFILL THE MANDATE THAT CONGRESS HAS GIVEN US OF SUSTAIN A MAXIMUM SUSTAINABLE EMPLOYMENT AND PRICE LEVEL STABILITY. THAT'S WHAT THE DISCUSSION IS ABOUT ALL THE TIME. I'VE NOT HEARD POLITICAL DISCUSSIONS IN OUR DECISION MAKING PROCESSES.

FISCHER ON EUROPE

I THINK THE EUROPEAN SITUATION IS ACTUALLY A LITTLE BETTER THAN PEOPLE THOUGHT IT WAS A FEW MONTHS AGO, AND I THINK THE EUROPEAN DECISION TO UNDERTAKE QUANTITATIVE EASING IS A BIG POSITIVE. THEY HAVEN'T STARTED YET. THAT SHOULD HAVE AN IMPACT. CHINA HAS SLOWED DOWN, BUT INDIA IS LOOKING GOOD. SO IF YOU LOOK AROUND, THERE ARE GOOD REASONS TO BE FAIRLY OPTIMISTIC AND TO BE OPTIMISTIC ABOUT THE UNITED STATES ECONOMY. IT'S REALLY DONE A REMARKABLE JOB OF RECOVERING FROM WHAT LOOKED LIKE IT WAS GOING TO BE THE MOST MASSIVE CRISIS, CLOSE TO THE MOST MASSIVE CRISIS WE'VE EVER HAD.

FISCHER ON OPTIMISM

I'M OPTIMISTIC ABOUT THE CAPACITY OF THIS ECONOMY TO DO WELL OVER THE LONG RUN AND ABOUT THE CURRENT SITUATION.

FISCHER ON SIGNS

WE'D LIKE TO SEE THAT THE INFLATION RATE, WHICH HAS BECOME NEGATIVE, TURNS AROUND AND STARTS BECOMING POSITIVE. THAT OUR ESTIMATES OF THE UNDERLYING RATE OF INFLATION, THE CORE RATE OF INFLATION, IS MOVING IN THE DIRECTION OF 2. IT'S PROBABLY ABOUT 1.5% NOW, AND WE'D LIKE TO SEE SOME SIGNS THAT REAL WAGES ARE BEGINNING TO RISE MORE RAPIDLY THAN THEY HAVE FOR THE PAST FIVE, SIX YEARS.

FISCHER ON INFLATION

I THINK THERE'S A PRETTY HIGH PROBABILITY THAT THIS IS THE YEAR. WE'RE VERY CLOSE ON UNEMPLOYMENT, AND INFLATION IS IN THIS SITUATION WHERE IT'S LOW BECAUSE OF OIL PRICES, BUT WE EXPECT IT TO GO UP ONCE THIS EFFECT WEARS OFF WHICH IT SHOULD DO IN A COUPLE MONTHS. SO IT'S ABOUT TIME.

FISCHER ON MORE WARNING

WE DON'T HAVE ANY INTENTION OF GOING MEETING BY MEETING BANG, BANG, BANG, BANG FOR 17 MEETINGS IN A ROW. WE'LL BE LED TO DO THINGS BY THE DATA. THAT'S WHAT SHE WAS SAYING. IN THIS CASE THOUGH, SHE WAS SPECIFICALLY I THINK TALKING ABOUT WHETHER WE HAVE TO GIVE MORE WARNING THAN WE'LL DO IT WHEN WE'RE READY, AND I THINK THAT'S WHAT THE MESSAGE WAS FOR THIS RISE.

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