Global markets are anticipating one of the game-changing financial events of the year. Experts are speculating about a possible deadline and watching closely every testimony of the US Federal Reserve Chair. Yes, that crucial event is the interest rate hike. In contrast to her predecessor Ben Bernanke, Janet Yellen is very cautious in speeches trying to avoid straightforward statements on a future monetary policy. Some analysts spotted the US Fed Chair waning fears about a possible interest rate hike in the short run when she was testifying to the Senate Banking Committee. In her speech, Janet Yellen also highlighted the need to streamline the monetary policy’s terms. "The FOMC’s assessment that it can be patient in beginning to normalize policy means that the Committee considers it unlikely that economic conditions will warrant an increase in the target range for the federal funds rate for at least the next couple of FOMC Meetings,” news agencies quote Janet Yellen as saying. Importantly, in case the US Fed is certain of obvious improvements in the economic fundamentals, the regulator retains the right to start discussing a gradual increase of interest rates at any meeting on schedule. Besides, the Federal Open Market Committee amended the forward guidance on its assessment of a further monetary policy. Such a decision reflects the feedback of the Fed officials to economic recovery which has nearly reached the target indicators. So, the interest rate hike is just around the corner.
