Fed rate path a balancing act for Yellen

Federal Reserve Chair Janet Yellen, seen December 16, 2015 as she announced the first interest-rate increase in more than nine years, now faces a balancing act as she negotiates pressure to act both more and less aggressively on the economyAfter the riskiest move of her career, US Federal Reserve Chair Janet Yellen has committed to a balancing act to keep her promise of gradual future interest rate increases. The slight quarter-point increase decided Wednesday, which ended seven years of the near-zero benchmark federal funds rate, had been telegraphed well in advance by the US central bank and was met with equanimity by the markets. “‘Gradual’ is now the key word for Fed statements going forward,” said his colleague Angel Ubide, who sees the pace at 100 basis points a year, which would bring the range of the Fed funds rate to 1.25-1.50 percent by the end of 2016.

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