Saturday, July 07, 2007

Janet Yellen (I told you so!)

I told you that Fed Head Janet Yellen (not pictured) would lead the Federal Reserve jawboning campaign on the worries over inflation. Does this mean that we can just forget all about any rate cuts heading our way in the near future? Maybe the near future. The economy seems to be doing quite well with the unemployment rate at 4.5% and new jobs keeping pace with population growth. The labor market is tight and wages are growing, but we haven't yet seen the gonzo growth that would lead to actual Fed tightening. Remember in the late 90's and in early 2000 when jobs and wage growth were growing at a too-fast pace? We're not at that point yet. Oh, and yes that is Battlestar Galactica's Cylon Asian babe Grace Park (nude, naked, smoking, maxim, blah blah blah). Grace Park trivia? She holds a degree in psychology from the University of British Columbia and speaks English and Korean, along with some French and Cantonese. She is currently studying Spanish. Ooh, baby... Donde esta la biblioteca?

S.F. Fed president calls for bias toward fighting inflation

The nation's monetary policy should be biased toward fighting inflation, Federal Reserve Bank of San Francisco President Janet Yellen said Friday.

Her comments received a great deal of attention as the holiday week drew to a close on a strong jobs report in which unemployment remained 4.5 percent.

In the text of Yellen's speech, delivered via teleconference to those attending a conference in Singapore, she said the risk of rising inflation continues and her "best guess" is that the growth pace of real gross domestic product in the U.S. "will pick up a bit in 2007 to a rate just below potential."
 blog it

blog comments powered by Disqus