Fed positions itself for a June rate hike

In her congressional testimony last week, Chair Janet Yellen appeared to lay the groundwork for the Fed to begin raising rates in June. Yes, the exact timing is still data dependent. But assuming we are right, and the unemployment rate continues to trend lower while wage growth shows more signs of accelerating, then there would be no reason to delay for any longer than that.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.