Fed chairwoman to be optimistic and open to move this year
by Greg Robb
Like a field judge in the Olympic track and field events, Fed Chairwoman Janet Yellen may use her speech in Jackson Hole to start the race for a rate hike as soon as September.
Yellen will speak Friday from the Fed’s summer retreat at 10 a.m. Eastern. The subject of her remarks is “The Federal Reserve’s Monetary Policy Toolkit.”
“We see Jackson Hole as the ‘ready’ warning and look for Chair Yellen to err on looking at the optimistic side” of the outlook,” said Drew Matus, senior U.S. economist at UBS.
To be fair, Matus thinks the U.S. central bank won’t issue the “set” warning until its September meeting policy statement and then “go” at the December meeting.