Why The Fed’s Window For A Rate Hike This Year Has Almost Closed

Jon Alternative Media, Banking, Blogosphere, Economy, Fiscal Policies

Janet Yellen would like you to believe she wants to raise interest rates. The labor and inflation numbers explain why she won’t.
When looking at the data, the most important things to consider are measures of how close officials are to achieving mandates on full employment and price stability. According to Fed projections, unemployment may fall as low as 4.4% in 2018. By that time, inflation may reach the 2% target.
That means the economy has spare capacity. By remaining on hold Yellen endorsed that view. While the FOMC doesn’t want output to overheat, the greater risk is tightening too soon will choke off growth in a still-tender economy.

This post was published at Zero Hedge on Sep 21, 2016.