On March 18th 2014 the US Federal Reserve Chair Janet Yellen stated the need for “reasonable confidence” in order to effectuate a more conservative monetary policy focusing on interest rate raise. Chair Yellen has indicated four macroeconomic factors that need to be further monitored.
• The labor market with further unemployment rate decline;
• A continued rise in currently slumped wages;
• Core inflation stabilization (independent of energy ‘push’);
• A higher “market-based” expected inflation rate.
For More: Financial Policy Best Practice Framework