17 Jun 2015
Fed Yellen: Trajectory of rates is more important than timing
FXStreet (Córdoba) - At a press conference following FOMC monetary policy, Fed Chair Janet Yellen said conditions for first rate hike have not yet been met.
Janet Yellen began reading the statement and Committee's economic projections which showed 15 of 17 officials still favor a 2015 rate hike. Yellen reiterated that rate hikes will be gradual over time and said they don’t plan to follow any type of mechanical approach.
Yellen said that they are not looking for simple thresholds but a wide range of information to assess improvement in the employment sector and inflation.
Fed’s Chair emphatized that too much emphasis is placed on the timing of the first hike but the path of the federal funds rate is what really matters.
When asked about IMF recommendation that the Fed should wait until next year to raise rates, Yellen commented that there is a range of opinions within the FOMC but at the end, all agree and the IMF agrees that policy should be data dependent.
Janet Yellen began reading the statement and Committee's economic projections which showed 15 of 17 officials still favor a 2015 rate hike. Yellen reiterated that rate hikes will be gradual over time and said they don’t plan to follow any type of mechanical approach.
Yellen said that they are not looking for simple thresholds but a wide range of information to assess improvement in the employment sector and inflation.
Fed’s Chair emphatized that too much emphasis is placed on the timing of the first hike but the path of the federal funds rate is what really matters.
When asked about IMF recommendation that the Fed should wait until next year to raise rates, Yellen commented that there is a range of opinions within the FOMC but at the end, all agree and the IMF agrees that policy should be data dependent.