Janet Yellen Says Fed Is Likely to Raise Interest Rates This Month

[SecularMotion]

Source: NY Times

Janet L. Yellen, the Federal Reserve chairwoman, said Friday that the Fed was likely to raise its benchmark interest rate this month, barring any unpleasant economic surprises.

Ms. Yellen’s declaration, in a speech in Chicago, capped an intensification in the Fed’s communication in recent days as officials put investors on notice that a rate increase was coming sooner than had been widely expected.

“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,” Ms. Yellen said, referring to the Fed’s policy-making arm, the Federal Open Market Committee.

The committee is scheduled to meet in Washington on March 14 and 15.

Read more: https://www.nytimes.com/2017/03/03/business/economy/federal-reserve-interest-rates.html

[unblock]

1. duh.

on edit: the implied odds of a hike are only 81.9% at the moment.

i'm surprised, i would have put it around 98%

http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

[Wounded Bear]

2. Waste of opportunity...

after years of historic low rates when we could have financed all the infrastructure spending to stimulate the ecomomy on the cheap.

Now Trump's plans will cost that much more in deficit spending.

[IronLionZion]

5. Republicans rejected Obama's infrastructure/Jobs plan in 2012

They were so anti-debt precisely because low interest rates are the best time to take on debt to stimulate an economy. They will only go into debt for wars that we don't need.

Trump is such a brilliant businessman. We can trust him to sort it all out.

[Cosmocat]

7. Fucking asshats

Nuff said ...

[bucolic_frolic]

3. Fed is worried about inflation

from latent QE stimulus which will take years to mop up, and the sudden
near full employment economy. Stimulating the robust Obama economy will
result in inflation. Plus, Trump's plan is a consumptive plan, it does not invest
in technology, science, government research labs, it's a bricks and mortar
throw. Technology is what grows productivity and trade surpluses; consumption
purely the opposite. We are at a comparative disadvantage and that will become
worse with such poor planning.

[redstatebluegirl]

4. How many of his supporters are carrying a credit card balance?

Will they blame him when they can't afford to make payments?

[IronLionZion]

6. Farms and factories use debt to purchase materials each year

so those types of folks who voted Trump will likely blame immigrants and poor people for raising their interest rates.

But seriously, while it is difficult for those who are paying interest, the Fed has to raise rates now to put the brakes on inflation.

[Wounded Bear]

8. Hell, many of them use debt to make payroll from month to month...

Bad times are a coming.