Fed's Yellen: Rate Hike Case Has Strengthened

The transcript discusses the potential for a rate hike in September, with Janet Yellen indicating that the case for an increase has strengthened. Market reactions are mixed, with a focus on upcoming data like the jobs report and CPI report. The discussion also covers economic growth, inflation targets, and the Fed's uncertainty about low rates in the bond market. The natural rate of interest and inflation target are debated, with Yellen pushing back against raising the inflation target.

What key economic reports are mentioned as influential for the potential September rate hike?

• Jobs report, CPI report, and retail sales report

• GDP report, housing starts, and consumer confidence index

• Manufacturing index, personal income, and government spending

• Unemployment rate, trade balance, and industrial production

How did the market react to the potential rate hike according to the transcript?

• Lower yields and a flatter curve

• Increased yields and a steeper curve

• Higher inflation expectations

• Increased volatility in the stock market

What is one reason the Fed is uncertain about the current economic conditions?

• Lack of historical data

• Rapid technological advancements

• Unexpected changes in consumer behavior

• Unclear reasons for low rates in the sovereign market

What is Janet Yellen's position on changing the inflation target?

• She believes the target should be lowered

• She is not actively considering a change

• She is actively considering a change

• She supports increasing the target

What does the Fed consider as the long-run range for the federal funds rate?

• 1%

• 2%

• 4%

• 3%