Janet Yellen: "I believe the case for a Fed Funds rate increase has strengthen in recent months"

Those were the carefully chosen words of Fed Chair Janet Yellen at the Jackson Hole Economic (August 25-27, 2016) Symposium.  Federal Reserve Chairwoman Janet Yellen advanced the thought that an increase in the Fed Funds rate would come sooner than later. Those thoughts were based on three economic factors:

• A solid labor market as based on the August numbers to be released 9/2/2016
• Stable to accelerating macroeconomic growth
• A 2% rate change in inflation as measured by core personal consumption expenditures

While Dr. Yellen was able to check off advances on those items, there was very little attention given to negative risks such as the economies of China and Japan or the UK exit from the European Union.

The FOMC Meeting in September 20-21 should give us a clue if her comments will come to fruition. It will be an interesting 3 weeks.