The Fed: This Is What It Sounds Like When Hawks Cry

Fed: Wasn’t it just a month or so ago that we were reassured by various and sundry Fed officials and their water-carriers in the media that the central bank was on an unavoidable path toward multiple interest-rate hikes over the next year? Well, maybe not so much.
During her semiannual testimony to Congress on Wednesday, Fed Chair Janet Yellen was in full dove mode, suggesting that rates are near a “neutral” level and might not have to go much higher.
“Because the neutral rate is currently quite low by historical standards, the federal funds rate would not have to rise all that much further to get to a neutral policy stance,” Yellen said in her prepared remarks. But she also called the economy “robust.”
The fed funds rate, the bank’s main policy instrument, is today at 1% to 1.25%, after a quarter-point hike last month, the third since last December. Many Fed-watchers had

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