June 7, 2016 – Rai Radio 1 aired an interview with SEP Scientific Council Member Stefano Manzocchi, in which he discusses Fed Chair Janet Yellen’s estimation of America’s economic growth. He points out that the markets reacted to her statement with optimism. While she expects the US economy to continue to improve, she admits that labor market conditions are still uncertain, especially considering the weak May job report. As such, most analysts do not expect a drastic increase in interest rates on June 15, when the board meets to decide on the issue. From her interview, a more gradual reduction in monetary policy accommodation is expected as market conditions improve, but June seems to be off the table for now.
- The original interview (in Italian) is available from Rai Radio 1.