Economic Analysis – Week of February 25, 2015

Fed Chairman Janet Yellen testified before Congress this week, and her comments suggest that the Fed is dissatisfied with the inflation rate and the labor market.  Wages are stagnant and the declining labor force participation rate, which increased slightly last month, has been primarily responsible for the improving unemployment rate.  Yellen made it clear that no one indicator will affect the Fed on when to raise interest rates.  Markets are expecting a raise in June or September.  The data in the manufacturing and service sector surveys suggest that the economy will grow at a modest pace over the next few quarters.

More analysis of this week’s news by Econoday’s Senior Economist Mark Rogers:

Econoday reports, available on TradingScreen’s award-winning TradeSmart EMS, provide alerts on upcoming economic announcements, and jargon-free analysis of their potential market impact. Mark Rogers, Senior Economist for U.S. markets, has over 19 years of experience with the Federal Reserve Bank of Atlanta as an economist and forecaster for national and regional economies.

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