Fed lift-off won't be delayed by Greece or China

Fed Chair Janet Yellen's semi-annual testimony to Congress on Wednesday and Thursday this week couldn't have been better timed for those wondering whether Greece's potential exit from the euro would prompt the Fed to postpone its first rate hike until late this year or even next year. We doubt it. (Furthermore, there is also still a chance that Greece might reach an agreement with its creditors.) Even at the start of last week, when a Grexit seemed almost inevitable after the referendum, the reaction in financial markets was stoical and late last week Yellen thought a rate hike later this year would still be appropriate.