Yellen Warns About Hiking Too Slowly, Leaves Door Open to March Move
​Fed Chair Janet Yellen delivered semiannual testimony on the economy and monetary policy this morning to the Senate Banking Committee. Combined with another warning that delaying policy normalization would be “unwise,†Yellen’s testimony suggests to us that the Fed would be open to hiking rates in March. However, since we do not see this Fed as being willing to surprise markets, such a move will likely depend on whether the February jobs report (released on March 10) pushes expectations for a hike above 50-50. We think the incoming inflation data—including tomorrow’s CPI report for January—will easily meet the requirement of indicating that inflation is continuing to move toward the Fed’s target.
RDQ Economics provides global macroeconomic consulting services with an emphasis on U.S. economic fundamentals and monetary policy.
Our views are driven by consistent application of classical economic and monetary principles and has generated superior anticipation of changes in the stance of monetary policy and of movements in economic growth and inflation.
The founders of RDQ Economics, John Ryding and Conrad DeQuadros, have a combined experience of 26 years on Wall Street, 12 years of experience in central banking at the Federal Reserve and the Bank of England and nine years in the independent research space. John and Conrad have worked closely with fixed income, foreign exchange, and equity traders and portfolio managers, which has enabled their analysis and advice to be tailored to a clientele that is focused on trading and investment decisions.
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