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Yellen Argues for Gradual Rate Hike

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The expedited meeting at the Fed unnerved many. While no economic policy change should be expected before the December 15-16 meeting, the Fed is clearly not in the camp of negative interest rates. They are looking to raise rates to aid pension funds and you cannot lower rates to “stimulate” the economy (although that never works anyhow) unless you raise rates first.

The Fed’s October meeting, as well as speeches by various Fed officials, all clearly hinted that a December rate hike is likely to be in the works. Today’s meeting saw Janet Yellen, the Federal Reserve Chair, argue for gradual rate “normalization” as she called an interest rate hike “appropriate” provided they continue to see progress toward labor and inflation goals.