Norris McLaughlin & Marcus, P.A.

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Janet Yellen

Dec 14, 2016

We’re Entering TrumpWorld – The Fed to Raise Rates Today

As the Fed wraps up their last of its eight 2-day meetings this year it’s likely to raise its key short-term interest rate by 0.25% or 25 basis points.  So, what’s motivating the Fed to raise the rate?  A number of factors are in the mix: (i) the base unemployment rate (the Department of Labor “U3 Rate”) is at its lowest since 2007, and we all remember the tail end of that boom; (ii) this year alone, the US has added approximately 2,000,000 jobs to date; (iii) with the U3 Rate at 4.6% there’s pressure building to increase wages, as employers look to add staff in a tightening employment market; and (iv) the Fed is expecting inflation to kick in during 2017. » Read More

Dec 16, 2015

The Fed Finally Moves – A 0.25% Interest Rate Hike

Fed Chair Janet Yellen announced this afternoon the much anticipated increase in its benchmark interest rate from zero to 0.25%. While many of the US economic sectors have improved, the Fed has been concerned about the low inflation rate. Notwithstanding that concern, the Fed unanimously agreed to the rate hike, noting in its policy statement that “the Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise over the medium term to its 2 percent objective.”

The increase in the Fed’s benchmark rate ends its quantitative easing program that has been going on for the better part of a decade.» Read More

Sep 16, 2015

The Fed September Meeting Has Arrived – Will Janet Yellen Raise Rates?

It’s now been nine years since the Fed has raised its benchmark interest rate which has essentially been at zero for quite some time.  The job market is certainly better reaching its lowest jobless rate of 5.1% since early in the recession, but the quality of jobs and workers’ pay has not increased to any meaningful level.  The housing market remains sluggish, certainly on new home starts. » Read More

Mar 19, 2015

Being “Patient” is Now Off the Table as Janet Yellen Issues the Fed’s March Statement – Interest Rates Likely to Rise By Summer’s End

While recognizing continued conflicting market data, the Fed feels confident enough to signal that interest rate increases are in the offing. In her statement yesterday, Fed Chair Janet Yellen acknowledged strong job creation, continued growth, and healthy consumer demand in the United States, but contrasted that against a global collapse in oil prices (under US$45/barrel) and a rapid run-up in the dollar (US$1.08 v Euro).» Read More

May 07, 2014

Fed Chair Janet Yellen Delivers Remarks to Congress

In her remarks to Congress this morning, Fed Chair Janet Yellen noted that while she is not overly concerned about the U.S. economy going forward, she is concerned that the U.S. housing market may be a drag on that continued recovery. She commented that while the U.S. economy was basically stagnant in the first quarter (a 0.1% annual growth rate), much of that stagnation can be attributable to the harsh winter in the U.S.» Read More

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