Yellen sticks to game plan at Jackson Hole

|By:, SA News Editor

Debate at the Fed is "naturally shifting" to when the central bank should begin to hike interest rates, says Janet Yellen in her speech at Jackson Hole, as the economy is getting closer to full employment and stable inflation.

Nineteen labor market indicators tracked by the Fed suggest the decline in the headline unemployment rate overstates improvement in the labor market, she says. On the other hand, rate hikes could come sooner than expected should progress in employment pick up and/or inflation moves up at a speedier pace.

"The Committee will be closely monitoring incoming information on the labor market and inflation in determining the appropriate stance of monetary policy."