Federal Reserve Chairman Ben S. Bernanke’s pledge to keep rates exceptionally low through late 2014 is a mistake with the U.S. economy gaining steam, said John Ryding, chief economist and co-founder of RDQ Economics.
The Federal Reserve may let inflation exceed 3 percent as it keeps the main interest rate low to boost growth, said John Ryding, a former Fed researcher who is chief economist at RDQ Economics LLC in New York.
Here’s what to look for when Janet Yellen testifies before the House Financial Services Committee today in her first public remarks since becoming Federal Reserve chairman on Feb. 3. Yellen’s prepared remarks will be released at 8:30 a.m., and the hearing will begin at 10 a.m. Yellen plans to speak to the Senate Banking Committee on Feb. 13 in a second day of semi-annual testimony.
The share of economists predicting the Federal Reserve will reduce bond buying in December doubled after a government report showed back-to-back monthly payroll gains of 200,000 or more for the first time in almost a year.
Orders for long-lasting goods such as computers and machinery climbed in November by the most in 10 months and new-home sales exceeded forecasts, showing a more broad-based U.S. economic expansion entering 2014.