Fed Chairwoman Janet Yellen’s Senate testimony yesterday suggested that the central bank is still on track to hike rates later this year, courtesy of the stronger economic trend. But the big day may arrive later than previously assumed. It’s all about the data. “Provided that labor market conditions continue to improve,” the Fed will raise rates when it’s “reasonably confident that inflation will move back over the medium term toward our 2% objective,” she advised. But while the official line tells us to prepare for policy tightening at some point, there’s more talk in some corners that the business cycle is looking shaky again. Huh?
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Daily Archives: February 25, 2015
Initial Guidance | 25 February 2015
● Yellen Puts Fed on Path to Lift Rates | WSJ
● Consumer confidence slides after big Jan. gain | USA Today
● U.S. services sector activity jumps in February: Markit | Reuters
● Case-Shiller: “The housing recovery is faltering” | HousingWire
● PMI: China mfg output at 4-mo high in Feb but export orders contract | Reuters
● Richmond Fed: Manufacturing Shows Growth Slowed | Bond Buyer