There is no doubt the Federal Reserve wants to raise short term interest rates as soon as possible. Today, Federal Reserve Chair Janet Yellen said the case to raise rates is getting stronger as the U.S. economy approaches the central bank’s goals. She said:
“In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months.”
Looking ahead, the FOMC expects moderate growth in GDP, additional strengthening in the labor market, inflation rising to 2% over the next few years, said Yellen. She further elaborated that based on this economic outlook, the FOMC continues to anticipate that gradual increases in the federal funds rate will be appropriate over time to achieve and sustain employment and inflation near their statutory objectives.