Yellen speak points to rate hike at September FOMC meeting

Janet YellenJanet Yellen spent 2 days last week testifying before Congress. There was a lot of discussion about Fed policy, but the big question was…

When should we expect the Feds to raise the over-night rate to banks?

It seems that we have been talking about this rate hike for so long with no action that most people are beginning to doubt that it will ever happen.

Janet Yellen has been in the hot seat numerous times over the last few years. She is more than adept at seeming to answer very direct questions without providing very direct answers. Still, the general take-away last week is that Ms. Yellen suggested that the long awaited and dreaded first rate hike is likely at the September 2015 FOMC meeting.

Yellen noted that all the Fed requirements for the first rate hike are not yet in place and may not be for several years; but holding rates at or near zero must end at some point, and this should probably happen sooner rather than later. Yellen did emphasize though that the Feds will proceed slowly, carefully monitoring the effects of the hike when it happens. She emphasized that at all costs, the Federal Reserve will proceed with caution.

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