Fed's Fischer says govt spending can boost productivity

Washington

PROPERLY directed government spending - including infrastructure spending as US President-elect Donald Trump has promised - can boost the economy's productive capacity, Federal Reserve vice-chair Stanley Fischer said on Monday.

Mr Fischer said there is disagreement about what spending policies are the most effective but "some combination of improved public infrastructure, better education, more encouragement for private investment, and more effective regulation all likely have a role to play in promoting faster growth of productivity and living standards".