Fed Chairwoman Janet Yellen surprised the market last week with her “6 months” estimate when asked to define how long will it be after the end of tapering to the first rate hike, and surprisingly, her colleagues tend to agree, and here are their recent comments:
If you read between the lines, you can see that while most don’t venture into confirming Yellen’s 6-months comments, most are open to rate tightening, as long as fundamental data supports it, which in a sense is not that different from Yellen herself. I think one of the most interesting observations to point out is the fact that there was no fear talking about “rate hike” or “policy tightening” by these Fed officials. In a sense, this is already a huge improvement as the very mention or discussion on rate hikes show underlying support for such a move.
Of course, when it comes to the Feds, none other is as respected as the Fed Whisperer himself, Hilsenrath of the WSJ, here’s what he said:
In conclusion, while analysts aren’t 100% convinced (Hilsenrath) that the U.S. economy will fully recover in 2016, most agree that some sort of policy tightening will take place as early as 2015. The very fact that there are plenty of speculations in the market and discussions within the FOMC on the timing of rate hikes are likely to keep USD on a firm tone in the coming weeks. I for one will be looking to BUY USD on dips.
Fed Officials Widely Support Yellen’s Timeline For Policy Tightening…
March 26, 2014 by Leave a Comment