YELLEN: RATES ARE GOING UP RIGHT AWAY, SAYS DELAY COULD CAUSE ‘EXCESSIVE RISK TAKING’

Good God, what in the world is she talking about now? Yellen is saying rates must be hiked now, in order to stave off excessive risk taking and financial instability? Where has she been for the past 4 years of QE fueled idiocy in the markets — starring one blown up VC funded IPO after the next?

But now that Trump is about to take over, she’s gonna get very serious about rigged markets and will make sure the Fed cools things down. After all, inflation is such a concern for the every day working blue collar’d American steel factory fuckhead of a worker. Right? Yes?

“Were the FOMC to delay increases in the federal funds rate for too long, it could end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of the Committee’s longer-run policy goals,” Yellen said. “Moreover, holding the federal funds rate at its current level for too long could also encourage excessive risk-taking and ultimately undermine financial stability.”

While stating the case for an imminent hike, Yellen also repeated her pledge that subsequent hikes will come at a gradual pace. Critics have worried that the Fed has missed opportunities to normalize policy, but Yellen said “the risk of falling behind the curve in the near future appears limited, and gradual increases in the federal funds rate will likely be sufficient to get to a neutral policy stance over the next few years.”

Yellen said the economy is making progress toward the Fed’s goals of maximum employment and price stability but still “has a bit more room to run.” Inflation is running faster and GDP growth has picked up as well, though business investment remains soft and consumer spending is posting moderate gains.