Bloomberg.- Milton Friedman put a nail in the coffin of the original version of the Phillips Curve 50 years ago when he correctly foresaw that the U.S. could simultaneously suffer from high unemployment and lofty inflation. A growing number of economists are now trying to lay to rest Phillips Curve 2.0, still in use at the Federal Reserve and other central banks to guide monetary policy.
Bloomberg.- Federal Reserve officials followed through on an expected interest-rate increase and raised their forecast for economic growth in 2018, even as they stuck with a projection for three hikes in the coming year.
Bloomberg.- Federal Reserve Chair Janet Yellen said freeing American International Group Inc. from the tight scrutiny tied to its too-big-to-fail label is an example of the process working properly — proving that a systemically important financial institution can make itself less risky.
Bloomberg.- White House senior economic adviser Gary Cohn has emerged as the leading candidate to succeed Janet Yellen as Federal Reserve chair when her term expires in February, according to a July 27–28 survey of economists. The former Goldman Sachs executive took over the top spot from Yellen, who was seen as the slight favorite in a similar poll seven weeks ago.
Bloomberg.- Federal Reserve Chair Janet Yellen said the U.S. economy should continue to expand over the next few years, allowing the central bank to keep raising interest rates, while also stressing the Fed is monitoring too-low inflation.
Bloomberg.- For investors, there’s only one mid-year market outlook that matters this week: Janet Yellen’s. And it’s not her thoughts on the prospect for inflation or labor-market tightness they’ll be most attuned to.
SEMANAeconómica.- Ello si se toma en cuenta que la economía de Estados Unidos está cerca del pleno empleo, dijo la presidenta de la Fed.
Bloomberg.- Federal Reserve Chair Janet Yellen said the U.S. economy faces no serious short-term obstacles, though it must deal with important long-term challenges of low productivity and growing inequality.