Fed chief joins chorus of officials indicating March increase likely
Fischer echoed those made earlier this week by several other Fed officials, including Lael Brainard, a board member who had been a leading voice urging caution in raising rates. READING THE NUMBERS
What has shifted the sentiment of most Fed officials decisively toward a rate increase has been a wave of robust economic data — notably on job growth, manufacturing and consumer confidence — along with surging stock prices.
On Thursday, the government reported that first-time applications for unemployment benefits — a proxy for the pace of layoffs — fell last week to their lowest level in nearly 44 years.
The stock market has been setting a string of record highs, fueled by confidence that President Donald’s Trump’s plans for cutting taxes and boosting spending will win congressional approval.
And inflation, which had been lagging at chronically low levels, has been edging steadily up, reflecting in part a rebound in gasoline prices and higher wages. The Fed’s preferred inflation gauge showed that prices rose 1.9 percent over the 12 months that ended in January. That was the largest 12-month gain in nearly five years and just below the Fed’s 2 percent target for inflation.
Yellen was asked during a question-and-answer period about the Fed’s likely response to Trump’s economic stimulus program, the details of which remain unclear. Yellen said Fed officials are inclined to wait to see which measures are approved by Congress.