Opening Rant
In next episode of the drama series "As The Fed Turns," we discuss the meaning of "relatively soon." Does the phrase imply a December rate hike or does it imply sometime in 2017? Why does this come up today because Janet Yellen gave prepared remarks before the Joint Economic Committee of the U.S. Congress.
Hidden within these prepared remarks were many clues as to what the FOMC is currently thinking about for future monetary policy. The key focus many seem to be thinking about is the sentence that reads:
"At our meeting earlier this month, the Committee judged that the case for an increase in the target range had continued to strengthen and that such an increase could well become appropriate relatively soon if incoming data provide some further evidence of continued progress toward the Committee's objectives."
Some seem to think this statement implies a December rate hike.