US Federal Reserve Chair Janet Yellen testified before Congress on Tuesday and said it would be several months before the US Fed raised the official cash rate from 0.25%. This was a change from her January comments which suggested a potential second quarter rate rise and goes to show that the US Fed is taking a very slow and steady approach to its first interest rate rise.
Art Cashin noted in commentary on CNBC that Yellen gave herself a lot of wiggle room in relationship to the style of her comments on when the US Fed may tighten but based on her comments today it is clear the market should not expect the US Fed to tighten interest rates before June at the earliest.
The Fed Chair said the Central Bank would not raise rates until it found “confidence in the economy” with concerns still being around jobs growth, inflation and energy prices. I just wonder how good the US Fed really wants to get it as the USA has an unemployment rate that is the envy of the developed world right now, inflation that is under control and oil prices at levels we haven’t seen in years.
Full story in Today's GoldRock Insider Report: www.LTGGoldRock.com
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