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Janet Yellen: Rate adjustment would likely be appropriate

Staff Writer | March 3, 2017
The Federal Reserve is likely to raise interest rates in March barring any unpleasant surprises, Fed Chair Janet Yellen said.
Janet Yellen
America   The personal-consumption expenditures price index rose
"At our meeting later this month, the Federal Open Market 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," Yellen said in a speech to The Executives' Club of Chicago.

"We realize that waiting too long to scale back some of our support could potentially require us to raise rates rapidly sometime down the road, which in turn could risk disrupting financial markets and pushing the economy into recession," she added.

Her remarks follow similarly hawkish rhetoric from a number of Fed officials over the past few weeks.

New York Fed President William Dudley said Tuesday that the case for a March move had become "a lot more compelling."

The personal-consumption expenditures price index, closely regarded by the Fed as a measure of inflation, rose a seasonally adjusted 0.4% in January from the prior month and climbed 1.9% from a year earlier, the Commerce Department said last week.