Yellen: March Hike Appropriate If Economy Evolves As Expected – Live Feed
by Tyler Durden
ZeroHedge.com
Mar 3, 2017
Yellen did not rock the boat as some worried, and instead said that “it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect” and added that “at our meeting later this month, the Committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.”
In other words, next week’s payrolls report is suddenly very, very important.
Here is the key segment from Yellen’s speech (link):
Our individual projections for the appropriate path for the federal funds rate reflect economic forecasts that generally envision that economic activity will expand at a moderate pace in coming years, labor market conditions will strengthen somewhat further, and inflation will be at or near 2 percent over the medium term. In short, we currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect. Indeed, at our meeting later this month, the Committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.
And the highlights
YELLEN: MARCH HIKE APPROPRIATE IF ECONOMY EVOLVES AS EXPECTED
YELLEN SEES NO EVIDENCE FED HAS `FALLEN BEHIND THE CURVE
YELLEN SAYS RISKS FROM ABROAD `APPEAR TO HAVE RECEDED SOMEWHAT
YELLEN CALLS HIRING QUITE SOLID, ECONOMIC OUTLOOK ENCOURAGING
The Rest…HERE
