“I expect that it will be appropriate at some point later this year to take the first step to raise the federal-funds rate and thus begin normalizing monetary policy,” Federal Reserve Chair Janet Yellen said on Friday in remarks to the City Club of Cleveland.
“Some tentative hints of a pickup in the pace of wage gains may indicate that the objective of full employment is coming closer into view,” Yellen said.
So much for the idea that the Fed is about to embark on another round of Quantitative Easing.
This coming week, Yellen will deliverthe Fed’s semiannual Monetary Policy Report. She will appear before the House Financial Services Committee on Wednesday, and before the Senate Banking Committee on Thursday.
-RW
if the Greeks have their drama, then the Feds have their good ol' yankee vaudeville. hiking the rate last time around triggered the abortive crack-up of 2008/2009...have the reservists become good austrians and desire a restorative, cleansing full crack-up? my guess, (and all ANYONE can do is guess), is that they will re-commence super-QE after some timid rate hikes cause the next round of financial panic.
ReplyDeleteRate hike to be followed by law against selling any asset class, a la China. That or lengthy "ttechnical glitch" accomplishing same ends.
ReplyDeleteMy bet is this is just more posturing but will not happen. http://imgur.com/tqmWOXC
ReplyDeleteThey are propping up a MASSIVE debt bubble.
ReplyDeleteI will believe it when i see it, this is jawboning and nothing more.
ReplyDelete