FT/Shawn Donnan/02-14-17
The US economy and fiscal policy face an uncertain path under the administration of Donald Trump, Janet Yellen warned on Tuesday as she played down any expectations of a March rate rise and reiterated that “monetary policy is not on a preset course”.
…That improving economic picture, she said, justified December’s move by the Fed to raise interest rates for only the second time in the past decade and expectations that it would have to continue to increase its target rate gradually in the months to come.
PG View: The alleged improving economic picture late last year seems not to be reflected in GDP, which fell to a 1.9% pace in Q4, vs 3.5% in Q3. That means that overall growth in 2016 was just 1.6%.
