Fed Signals Cautious Optimism and Support for Higher Rates

FOMC still worried about misses of 2 percent inflation target
Powell to be sworn in as Fed chair Feb. 5, succeeding Yellen

Former Atlanta Fed President Dennis Lockhart discusses the Fed’s policy statement and his outlook for rate hikes. (Source: Bloomberg)

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By Craig Torres

January 31, 2018 at 10:47 PM UTC

This article is for subscribers only.

Janet Yellen spent most of her four years as Federal Reserve chair as a dove but ended her term on a hawkish note, building the case for further interest-rate increases at her final policy meeting before handing over to Jerome Powell.

While leaving rates unchanged, the U.S. central bank said “gains in employment, household spending and business fixed investment have been solid,” in a statement on Wednesday that also upgraded the outlook for inflation, paving the way for a hike in March.