Yellen Proclaims Economy Healthy, Targets 2% Inflation
“I think we have a healthy economy now,” Yellen said at an event at the University of Michigan’s Ford School of Public Policy in Ann Arbor.
Good morning folks,
Lets start the day off by drawing our attention to the state of the US economy.
Throughout the last couple of years we have seen the unemployment figures reduce noticeably, considerably!
All of that hard toil has been amassing incomes and growth for a wide range of companies across a broad spectrum of market sectors.
Nothing unusual with that I hear you say.
Of course the statistics could be better and theres always room for improvement, you can take any success story and find fault if you look hard enough its the nature of the beast.
Inflation could be a little less volatile it has to be said, but this chart, kindly provided by the bureau of labor statistics is one that clearly states that there is economic stability in the good ol’ US of A.
Head of the Fed, Janet Yellen, is targeting 2% inflation throughout the remainder of 2017, and is overall quite satisfied with the results she’s seen so far.
According to Reuters, Yellen stated, “I think we have a healthy economy now”, at an event at the University of Michigan’s Ford School of Public Policy in Ann Arbor.
Unemployment, at 4.5 percent, is now a little bit below the jobless rate that most Fed officials think signals full employment, and Yellen remarked that inflation is reasonably close to the Fed’s 2-percent goal.
With the economy expected to continue to grow at a moderate pace, Yellen advised that the Fed is now shifting its focus. “Whereas before we had our foot pressed down on the gas pedal trying to give the economy all the oomph we possibly could, we’re now allowing the economy to kind of coast and remain on an even keel — to give it some gas but not so much that we are pressing down hard on the accelerator — that’s a better stance of monetary policy,” she said. “We want to be ahead of the curve and not behind it.”
All very encouraging to the point where interest rates will see a hike on the understanding that a buoyant, strong economy will be able to absorb such impact and enable the government to tap into the rich seam of growth that its loyal subjects yield.
As I have said, all of that hard toil has been amassing incomes and growth for a wide range of companies across a broad spectrum of market sectors. Last week I advised taking advantage of once such company, ASML, which I did well with back in 2013.
Now, of course, the earnings season is upon us and publicly traded companies are revealing their results, such is their obligation. It may have come as a surprise to you, but when I perused the morning media over here in Asia and saw the CNBC report on ASML, I didn’t need to check the price of ASML to realize my prediction was accurate.
Yes, I am proud, and you should be too if you took the advice. My suggestion, now, is to sit on this until the second quarterly earnings report and thank me again.
If not, well nothing ventured and all that, but you will be considered a wandering generality by your peers when you personally fall short of expectations and can’t afford to take your kids away on holiday
Enjoy your week investment lovers.