Yellen: Appropriate to cautiously increase rates
Janet Yellen is not signaling exactly when the FOMC will next raise rates but she is saying that a move will probably be appropriate sometime in the coming months. Employment is the economy's strong suit and Yellen describes the labor market as "really improved" and she specifically notes gains for the participation rate. She says there's still slack in the labor market though, in a comment that does point to a rate hike, she warns that the unemployment rate is closing in on the Fed's full employment goal. A major negative, however, is the ongoing struggle in productivity where she describes the pace as "really miserable" and a "serious negative" for the economy. For her overall outlook, she sees the economy continuing to improve and inflation moving back to 2 percent over the next couple of years. Demand for stocks is rising slightly and demand for Treasuries is sinking slightly in early reaction, one consistent with a slightly increased chance for a near-term rate hike. Yellen made her comments at a Harvard awards ceremony.
Today I spoke with 3 different middle class, middle aged people who have recently been laid off.
One woman, formerly at Thrifty, acquired by Hertz, was kept on temporarily as a contractor until she trained immigrants to take her place (at less pay of course).
Another let go this week from a hospital.
A third, with Coldwell-Banker, was let go and hired as a contractor with no benefits.
A forth was recently laid off by his father because their oil business had dried up.
My grand-kids do good to find 25 hours a week.
Meanwhile the future looks bright for non-Americans.
Feds spending millions flying illegals across USA...
Edited by Rogerdodger, 27 May 2016 - 02:03 PM.