FT reports Yellen remark:
"Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter. But if the economy surprises us, our judgments about appropriate monetary policy will change."
Yellen: "The wage-price spiral no longer seems to provide a useful description of the U.S. inflation process."— Ylan Q. Mui (@ylanmui) September 24, 2015
Yellen: "I anticipate that it will likely be appropriate to raise the target range for the federal funds rate sometime later this year."— Ylan Q. Mui (@ylanmui) September 24, 2015
BREAKING: Janet Yellen says rate rise likely appropriate later this year http://t.co/86s2SjAoDf— Bloomberg Business (@business) September 24, 2015
Yellen: "Most FOMC participants, including myself, currently anticipate… initial increase in the federal funds rate later this year"— Neil Irwin (@Neil_Irwin) September 24, 2015
Yellen lays out most detailed case yet to begin raising interest rates this year http://t.co/SMlRTOrDhL— WSJ Breaking News (@WSJbreakingnews) September 24, 2015
YELLEN: "if the economy surprises us, our judgments about appropriate monetary policy will change"— Matthew Yglesias (@mattyglesias) September 24, 2015
Yellen says appropriate to raise interest rates this year as inflation to return to target http://t.co/KNGQmBHQgy pic.twitter.com/BcebQLkMoU— MarketWatch Economy (@MKTWeconomics) September 24, 2015
Look, I know there are Fed haters out there who think the Fed will never raise rates.
I have no problem dissing the Fed, even in their building, but there is no sound economic theory that indicates the Fed is never going to raise rates.
Indeed, if there is no significant downside activity in the stock market in the near term(and major downside activity is getting less likely everyday), the Fed will raise rates before the end of the year. If rates aren't raised by the end of the year, pressure from price inflation will eventually force the Fed to raise rates.
Higher rates are coming, regardless of what Janet Yellen thinks now, one way or the other.
Full Yellen speech here.
Shocking Video of Janet Yellen Before She Received Medical Attention