FRB Chair Yellen Throws Her Support Behind Interest Rate Increase

In recent remarks at Harvard University, Federal Reserve Board (“FRB”) Chair Janet Yellen indicated that she has joined the consensus view at the central bank and supports an interest rate increase in the not so distant future. Though she did not specify the timing of the move, she told audiences that “it’s appropriate” for the FRB to increase rates over time and “probably in the coming months such a move would be appropriate” according to a Bloomberg article on the matter.

When the Federal Open Market Committee meets in Washington June 14-16, Yellen and her colleagues will contemplate an interest rate increase. This would be the second such rate increase since December, when rates were hiked after seven years of near-zero borrowing costs. The move shouldn’t come as a surprise to most, though. According to Bloomberg, “Several regional Fed presidents, ranging from Boston Fed President Eric Rosengren to San Francisco’s John Williams, have in recent weeks urged financial market participants to take more seriously the chances of a rate hike in the next two months, pointing to continued signs of steady if unspectacular growth in the U.S. economy and the waning of risks posed by global economic and financial conditions.”

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