That was the message from Fed Chair Janet Yellen in her Q&A session on Friday. Rate hikes are coming; be patient and prepare.
We will get a more detailed idea of timing when Yellen gives a prepared speech on the economy June 6. By then the key employment data for May will have been released and she will have a good idea of what her FOMC colleagues are thinking. But also important will be Tuesdays inflation update. Markets will be looking for the price index of Personal Consumption Expenditures (PCE) – the Fed’s benchmark – to start following the CPI number up the the 2% target.
See chart below