U.S. Federal Reserve Chairwoman Janet Yellen has strongly indicated to Congress that, barring any major shocks to the global economy, the Fed policymakers are likely to vote for an interest rate hike very soon.
On Dec. 2, Yellen said the U.S. economy has "recovered substantially since the Great Recession" and that she was "looking forward" to increasing rates.
Then on Dec. 3, Yellen continued to boost morale. "I currently judge that U.S. economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market," she said. "Ongoing gains in the labor market, coupled with my judgment that longer-term inflation expectations remain reasonably well anchored, serve to bolster my confidence in a return of inflation to 2%."
Of course, the problem with these comments from Yellen is that she's being intentionally vague on timing and rationale.
Other experts make clearer justifications for a December rate hike.