By most real indicators, the U.S. economy is not too hot or cold, yet financial markets are betting that a core group of Federal Reserve officials who set interest rates are suddenly raring to go.
Federal Reserve Bank of Philadelphia President Patrick Harker said the U.S. central bank’s March meeting is a live option for an interest rate increase if job market momentum holds up, growth continues and wages rise.
The U.S.’s fiscal position is poised to worsen at the wrong time.
Inflation across the world is beating analysts’ forecasts even before the potential effect from Donald Trump’s economic policies. The global Citi Inflation Surprise Index, which measures price surprises relative to market expectations, is at the highest in more than five years. The reading turned positive in December — meaning inflation data were higher than expected — for the first time since 2012.
The Federal Reserve held interest rates steady on Wednesday in its first meeting since President Donald Trump took office, but painted a relatively upbeat picture of the U.S. economy that suggested it was on track to tighten monetary policy this year.
Federal Reserve officials left interest rates unchanged while acknowledging rising confidence among consumers and businesses following Donald Trump’s election victory.
In its first meeting since President Trump took office, the Federal Reserve said that the nation’s slow-and-steady economic expansion had continued.
The Federal Reserve kept interest rates unchanged on Wednesday in its first meeting since President Donald Trump took office, but painted a relatively upbeat picture of the U.S. economy that suggested it was on track to tighten monetary policy this year.
Janet Yellen said on Thursday that the U.S. central bank should continue to raise rates slowly to keep jobs plentiful and inflation low.
Federal Reserve Chair Janet Yellen said the U.S. economy is “close” to the central bank’s objectives of full employment and stable prices and she’s confident it will continue to improve.