Yellen: “The scenario of increased interest rate has strengthened in recent months” – Jornal de Negócios – Portugal

First was Robert Kaplan, the Dallas Fed, after William Dudley, the New York Fed, Stanley Fischer, vice chairman of the Fed, Esther George, the Kansas City Fed, and James Bullard, the St. Fed Louis. Now it was the turn of Janet Yellen, president of the US Federal Reserve, argued that there are more arguments to raise the benchmark rate, currently between 0.25% and 0.50%. In his speech at the Jackson Hole Symposium, the official has stressed, however, that the data have to confirm estimates of the central bank.

“In fact, in light of the solid and continuous performance labor market and our forecast for economic activity and inflation, I believe that the scenario of an increase in the reference rate strengthened in recent months, “said Janet Yellen this Friday, August 26th, at the meeting in Jackson Hole in the uS. Because, explained the president of the monetary institution, “the US economy is now approaching the statutory objectives of the Fed’s full employment and price stability”.

Less than a month next monetary policy meeting of the Fed, Janet Yellen is already the sixth head of the central bank pointing to a rise in short-term interest rates. And as some of his colleagues of the monetary institution, has stressed that “the decision will always depend on the extent to which these data continue to confirm the predictions of the committee” of monetary policy.

The statements Janet Yellen were not a surprise, because the markets were waiting to see if the charge would strengthen the position of his colleagues, or put an end to the short-term expectations. The truth is that the support of the chairman of the Fed, the scenario of rising interest rates in the coming times, it was only circumstantial. However, underlines the growing rhetoric in favor of the second rise in US interest rates in ten years.