Yellen Ties Rate-Rise Pace to ‘Actual Progress’ on Inflation
- Fed chair cites persistent shortfall in inflation from target
- Bar for second rate hike higher than for first, analyst says
The Marriner S. Eccles Federal Reserve building stands at sunrise in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Reserve policy makers may need to have more than just confidence that inflation will pick up to raise interest rates again after liftoff.
Chair Janet Yellen on Wednesday suggested that the pace of future rate increases could depend on “actual progress” in price gains toward the central bank’s target. That’s a shift from the requirement the Federal Open Market Committee set for an initial move, to be “reasonably confident” that inflation would move back to its goal over the medium term.