Janet Yellen at the Congress on July the 15th

Due to a stronger business cycle momentum in the second quarter, Janet Yellen’s answers on monetary policy were expected as important. It was her semi-annual testimony at the Congress (Senate) on July the 15. (see here her report)
An article in the Wall Street Journal yesterday mentioned that some FOMC members were expecting a more rapid increase of interest rate than what was said in the last minutes of the Fed’s meeting. (see here). What was then her position? Continue reading

Fed’s Strategy – How to avoid having hands tied?

At its FOMC meeting, the Federal Reserve has kept unchanged its interest rates and has continued to reduce the amount of assets purchased every month. Nevertheless the monetary policy framework has changed. The reference to a threshold on unemployment rate to trigger a change or thinking to a change of interest rates has disappeared.

Three remarks on the economic situation Continue reading