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The twisted logic of the Fed

Janet Yellen has most likely decided to play a strategic game.

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Ms Yellen said several times that the increase in interest rates is a strong sign of the Federal Reserve's confidence in the strength of the American economy.

THE Federal Reserve announced on Dec 16 that it would raise policy interest rates by ¼ to ½ of 1 per cent, ending the seven-year policy of keeping Fed interest rates near zero, and would embark on a path of "gradual" interest rate increases in order to "normalise" interest rates. This...

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