Janet Yellen gives his blessing at the beginning of a gradual process interest rate hike in the United States. Yesterday the number one of the Federal Reserve he explained that if the FOMC, the operating body of the US central bank, "were to postpone the start of the normalization of monetary policy for too long", eventually it would "probably have to tighten relatively abruptly".
And such a “sudden” operation would risk unbalancing the financial markets – Yellen continued speaking at the Economic Club of Washington – and perhaps inadvertently push the economy into recession. Furthermore, keeping rates at the current level for too long (0-0,25%, the level reached in December 2008) could also encourage excessive risk-taking and therefore compromise financial stability”.
