Increasing Interest

While inflation is well below the Fed’s 2% goal, according to Fed Chairwoman Yellen 80% of the shortfall is evenly split between low energy prices and the strengthening dollar, with the remainder split between labor market slack and weak commodity prices. Except for labor market slack, Yellen expects the other forces to dissipate relatively soon. Given that perspective and a solid US economy, the Fed raises rates 0.25% in 2015!