Yellen confident that interest rates will go up this year

by Ryan Smith10 Jul 2015
Interest rates will almost certainly rise before the year is out, the head of the Federal Reserve said today.

Speaking in Cleveland, Fed chair Janet Yellen said that although the job market needs to improve first, she felt confident that the Fed would start “normalizing” monetary policy this year. If so, it would be the Fed’s first rate hike since 2008.

“I expect it will be appropriate at some point later this year to take the first step to raise the federal funds rate and thus begin normalizing monetary policy,” Yellen said. “But I want to emphasize tht the course of the economy and inflation remains highly uncertain.

“We will be watching carefully to see if there is continued improvement in labor market conditions, and we will need to be reasonably confident that inflation will move back to 2% in the next few years,” she added.
 

COMMENTS

  • by Ryan Taylor | 7/10/2015 2:29:54 PM

    Amazing. Just when more people start applying for unemployment. That makes sense....

  • by Parkland Power team | 7/10/2015 3:12:07 PM

    I agree that this is not going to be a large interest rate hike. but it will make those sitting ton the fence about buying a new home start the process.

  • by MoJo | 7/10/2015 3:37:15 PM

    Really? You think? Because rates have already went up and I do not see those people getting off the fence to move forward.
    I see them getting off the fence and not buying a home. Or worse, waiting for the rates to come back down and when they do not, you lose the buyer.
    Good call Yellen. Stall the economy just want it starts moving in the right direction.

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