10 Jul 2015
Fed's Yellen: Rate hike will be appropriate in 2015
FXStreet (Córdoba) - Federal Reserve Chair Janet Yellen said the Fed still plan to start raising federal funds rates later this year but unanticipated developments could delay or accelerate the timing of the lift-off.
"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," Yellen said in prepared remarks to the City Club of Cleveland. However she warned that “the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate this first step”.
So the Fed remains on track to hike rates in 2015 despite recent developments in Greece, stock market slump in China and a disappointing US nonfarm payrolls report raised doubts among investors.
Regarding employment, she said that unemployment rate probably does not fully capture extent of labor market slack “how far away we are from a full-employment economy.”
However, Yellen said she believes that many of the fundamental factors underlying US economic activity are “solid and should lead to some pickup in the pace of economic growth in the coming years”. In particular, I anticipate that employment will continue to expand and the unemployment rate will decline further.
"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," Yellen said in prepared remarks to the City Club of Cleveland. However she warned that “the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate this first step”.
So the Fed remains on track to hike rates in 2015 despite recent developments in Greece, stock market slump in China and a disappointing US nonfarm payrolls report raised doubts among investors.
Regarding employment, she said that unemployment rate probably does not fully capture extent of labor market slack “how far away we are from a full-employment economy.”
However, Yellen said she believes that many of the fundamental factors underlying US economic activity are “solid and should lead to some pickup in the pace of economic growth in the coming years”. In particular, I anticipate that employment will continue to expand and the unemployment rate will decline further.