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Fischer says Fed may be closer than thought to inflation target

A Federal Reserve police officer keeps watch while posted outside the Federal Reserve headquarters in Washington.
Kevin Lamarque | Reuters
A Federal Reserve police officer keeps watch while posted outside the Federal Reserve headquarters in Washington.

The Fed may quickly meet its 2 percent inflation target once the price of oil stabilizes and the dollar stops rising, Fed Vice Chairman Stanley Fischer said on Wednesday.

Fischer said despite a low headline inflation rate, the central bank may be closer than thought to its target.

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"Those are things that can't go on forever," Fischer said of the dramatic drop in oil prices and the steady rise in the dollar that have conspired to weigh down U.S. inflation.