Former Fed chair expects to see lower rates this week
Former Federal Reserve Chairwoman Janet Yellen said she would vote to cut rates by a quarter-point this week but the reasoning and follow-up is more intriguing than the call.
"I would be inclined to cut a bit," she said Sunday at an event in Colorado "I wouldn't see this as the beginning-unless things change-of a major easing cycle. But I do think it's appropriate."
Importantly, she thinks it's low inflation and the Fed repeatedly missing the target for years that's the main justification. There's a battle at the Fed among those who see economic risks and those who want to regain credibility on inflation.
Ultimately, they're both on the same side but the inflation side is more likely to be in the one-and-done or two-and-done camp.
