Rate hikes are still a ways out: that was the message from Janet Yellen and the Fed yesterday after the Federal Open Market Committee’s statement came out. However, Yellen also hinted that once interest rates do start to rise, they could go up faster than many currently expect. Rates are currently lower — and have stayed low for longer — than in any recovery in recent memory. Here’s what interest rates have looked like in every recovery since 1982:
Reuters has a story out this week delving into Fed chair Janet Yellen’s views about employment. Yellen wants to see more wage growth before she really believes the employment situation is improving, as “research from the Fed’s staff and her own past academic work both suggest there may be more slack in the economy than inflation hawks believe,” according to the Reuters piece.