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Martin Feldstein: Chinese economy and Fed policy

Martin Feldstein

Janet Yellen's speech on September 24 at the University of Massachusetts clearly indicated that she and the majority of the members of the Federal Reserve's Federal Open Market Committee (FOMC) intend to raise the short-term interest rate by the end of 2015. It was particularly important that she explicitly included her own view, unlike when she spoke on behalf of the entire FOMC after its September meeting. Nonetheless, given the Fed's recent history of revising its policy position, markets remain sceptical about the likelihood of a rate increase this year. The Fed had been ...