« An Educated Approach to Job Creation | Main | Social Security Reform Stopped by Democrat’s Radical Economists »

Monday, August 01, 2005

The Fed is Yellen that Rates are Going Up

FedSpeak from Federal Reserve Bank of San Francisco President Janet Yellen says rates are going up again:

Yellen Says It ‘Makes Sense’ for Fed to Raise Rates, Bloomberg:  The Federal Reserve should keep raising interest rates to pull some of the stimulus out of the U.S. economy, which already is grown near its capacity, Fed Bank of San Francisco President Janet Yellen said. “Policy still appears to be somewhat accommodative,” Yellen said told community leaders in Portland, Oregon. “Given the recent inflation performance and the dwindling of slack, it makes sense to continue the process of removing that accommodation.” …A federal funds rate of 3.5 percent is at “the absolute lower end” of a range where the central bank's monetary policy neither stimulates growth nor fans inflation … Some models suggest the upper end of the range is about 5.5 percent, she said.  … “I expect to see some moderation in inflation going forward,” Yellen said. “Looking at the big picture elements -- growth, employment, and inflation -- I’d say things are in reasonably good shape.” … “Given all this, it seems to me that the economy is on track to achieve price stability and “maximum employment’ -- the dual goals assigned to monetary policy by the Federal Reserve Act,” Yellen said…

Calculated Risk covers more of her remarks here and notes she is fairly upbeat about the Fed's ability to manage any fallout from problems that may arise in the housing sector.

    Posted by on Monday, August 1, 2005 at 02:25 AM in Economics, Monetary Policy | Permalink  TrackBack (0)  Comments (12)

    TrackBack

    TrackBack URL for this entry:
    https://www.typepad.com/services/trackback/6a00d83451b33869e200d83450e69753ef

    Listed below are links to weblogs that reference The Fed is Yellen that Rates are Going Up:


    Comments

    Feed You can follow this conversation by subscribing to the comment feed for this post.