Yellen: Fed may hike rates sooner if labor market quickly improves

http://online.wsj.com/articles/feds-yellen-u-s-economy-continues-to-improve-but-recovery-not-yet-complete-1405432838 Federal Reserve Chairwoman Janet Yellen defended keeping interest rates low before Congress on Tuesday, but opened the door a crack to earlier-than-planned rate hikes if the labor market continues its surprising improvement.

"If the labor market continues to improve more quickly than anticipated by the [Fed]," she told the Senate Banking Committee, "then increases in the federal-funds rate target likely would occur sooner and be more rapid than currently envisioned." The Fed has held its benchmark short-term rate near zero since late 2008.

While continuing to stress that "a high degree of monetary policy accommodation remains appropriate," Ms. Yellen's acknowledgment that rates could rise sooner than planned marks a notable new hedge. She made a similar comment at a news conference in June, but without pointing out that the unemployment rate and other job-market measures were improving more quickly than officials expected.

Ms. Yellen's testimony Tuesday, the first of two days of hearings on the economy and monetary policy, was her first update on the economy since an unexpectedly strong Labor Department report earlier this month showed the unemployment rate dropped to 6.1% in June and businesses expanded payrolls by a robust 288,000. The jobless rate is down from 7.5% a year ago and payrolls have grown on average by 230,000 a month during the first half of the year.

Read Original Story...
HEADLINES
Canada, Mexico and Japan want to revive the Trans-Pacific Partnership free trade deal
Defense stocks at record highs after Trump signs $110 billion arms deal with Saudi Arabia
Trump’s proposal to sell oil reserve shows decline in reliance on imports, weaning off OPEC crude
Japan, Trans-Pacific Partnership members to pursue trade deal without the U.S.
OPEC seen extending output cuts as Saudi Arabia says most members on board
Oil prices rise as OPEC, other producers are expected to extend, deepen supply cuts
About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

Speak Your Mind

*

Newsletter

Zero spam.