U.S. Outlook: Is the Yellen FOMC more hawkish?

Scott Anderson
Posted by Scott Anderson
Chief Economist

Despite a weak start to the year and financial volatility in emerging markets, the FOMC appears to have doubled-down on its monetary exit strategy in March.

Graph showing uptick in business lending.Below are brief highlights of my weekly economic analysis, followed by a link to the full U.S. Outlook report, delivered on March 21, 2014.

Key observations:
  • Surge in U.S. business spending is underway.
  • Industrial production and loan data point to sharp pickup in Q2 economic activity.
  • FOMC could now start rate hikes in Q2 2015, earlier than markets expected.
  • Yellen surprises markets with hawkish hints.
  • FOMC now more committed to ending asset purchases and normalizing short-term rates.

Click here to read my full report.

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