Economics
Data-Dependent Yellen Running Out of Reasons to Delay Hike
- U.S. economy near Fed goal of stable prices, full employment
- Dudley signals ‘compelling’ case, Brainard tilts hawkish
Is March Fed Rate Hike Locked, Live and 100 Percent?
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By most real indicators, the U.S. economy is not too hot or cold, yet financial markets are betting that a core group of Federal Reserve officials who set interest rates are suddenly raring to go.
They could have those convictions confirmed or tempered when Fed Chair Janet Yellen gives an economic outlook speech in Chicago on Friday. If her remarks from January are a guide, Yellen will give investors an update on progress toward the Fed’s goals of full employment and stable prices. It wouldn’t be hard to make a case for higher rates, and doing so would put Yellen in line with many of her colleagues. But part of Yellen’s style is to also offer caveats on headline indicators.