PhotoThe economy will keep growing just enough to put more Americans back to work, but without overheating to generate excessive inflation. Second, markets now believe the Fed’s message that higher rates are on the way; bond markets suggest that the Fed will actually follow through with its intentions on gradual interest rate rises. “The simple message is: The economy is doing well,” Ms. Yellen told reporters. This will, if these plans stay in force, remain the slowest cycle of interest rate increases in modern history. If policies along those lines materialize, they can plug them into their models and accelerate the pace of rate increases; if Congress is bogged down in stalemate, they won’t.

Source: New York Times March 15, 2017 21:04 UTC