Federal Reserve Chair Janet Yellen says she doesn’t disagree with her predecessor on the substance of monetary policy. She does differ in style, which may prove important if the market reaction to her debut press conference is indicative.
The Federal Reserve will probably discard its 6.5 percent jobless rate threshold while adopting qualitative guidance for signaling when it will consider raising the benchmark interest rate, economists said in a survey.
Federal Reserve Governor Jeremy Stein endorsed a warning by economists that raising the main interest rate may cause a financial-market convulsion similar to the “tantrum” that occurred last year after the Fed said it was considering trimming its bond purchase program.
Janet Yellen says Federal Reserve policy makers need to look at a broader range of data to get a good handle on the job market. She hasn’t highlighted one labor indicator that economists say is sounding inflation alarms: short-term unemployment.
The economic expansion in the U.S. is sufficiently entrenched to withstand a short-term slump in stock prices and weakness in emerging markets, keeping the Federal Reserve on track to trim stimulus, economists say.
The U.S. economic expansion is sufficiently entrenched to overcome a short-term slump in stock prices and a cooling in emerging-market growth, keeping the Federal Reserve on track to reduce stimulus, economists say.