US rate hike in “the coming months”

In a speech on Friday at Harvard University, US Fed Reserve Chair, Janet Yellen, made some important remarks about the timing of the next rate hike. “It’s appropriate for the Fed to gradually and cautiously increase our overnight interest rate over time… Probably in the coming months, such a move would be appropriate.” She was up-beat about the prospects for the US economy. “The economy is continuing to improve… [I expect] inflation will move up over the next couple of years to our 2 percent objective,” she said. Original story: (VIEW LINK) With the market now pricing in a rate hike this year, it’s worth remembering Charlie Jamieson’s recent comments to Livewire: “Since February 1994… We’ve had 126 Fed meetings since that date. In all 126 of those Fed meetings, the Federal Reserve has never adjusted interest rate policy unless the Fed Funds Futures market has priced that move ahead of time.”