wage inflation begins to take off, Janet Yellen will have to act by removing the punch bowl from the party. If this happens, sparks could fly in Washington DC, writes Kyran Fitzgerald

There is an eerie calm about financial markets at present. Currency and bond markets are quite range bound, while world stock markets hit new record highs in the past week.

Bank stocks have jumped on hopes that bigger profits are ahead and US indexes again pushed to record highs.

The ECB rejected US accusations of currency manipulation yesterday and warned that deregulating the banking industry, now being discussed in Washington, could sow the seeds of the next financial crisis.

As widely anticipated, last week’s meeting of the US Federal Reserve saw the central bank increase the target range for the federal funds rate by 25 basis points to between 0.5% and 0.75%.

European stocks slid to their lowest in nearly four months and sterling continued to fluctuate as investor jitters intensified ahead of Britain’s EU membership referendum next week.

European stocks were little changed amid thin trading as investors considered the implications of a possible increase in US interest rates after Federal Reserve chair Janet Yellen said a hike is likely in the coming months.

The Federal Reserve should raise interest rates “in the coming months” if the economy picks up as expected and jobs continue to be generated, US central bank chief Janet Yellen said yesterday.

US Federal Reserve chair Janet Yellen said it is appropriate for US central bankers to “proceed cautiously” in raising interest rates because the global economy presents heightened risks.

As expected, this month’s monetary policy meeting of the US Federal Reserve saw it maintain the key funds interest rate at 0.375% for a second consecutive meeting.

The US economy faces a number of global threats that could derail growth and compel the Federal Reserve to slow the pace of future interest rate hikes, chair Janet Yellen has said.

As expected, the December meeting of the US Federal Reserve saw the central bank raise interest rates for the first time since June 2006.

Inflation at zero, rather than a forecast -0.1%, was not enough to shift sterling out of tight ranges on the run in to tonight’s US Federal Reserve meeting, widely expected to raise interest rates for the first time in almost a decade.

That much anticipated September meeting last week concluded with the Federal Reserve erring on the side of caution by not increasing interest rates.

When the Federal Reserve drove its target interest rate near zero in late-2008, it sparked an economic debate about the risks of having nowhere lower to go, and in particular the financial bubbles it might stoke.

The majority of international fund managers expect the US Federal Reserve to raise interest rates in September.

Federal Reserve Bank of New York president William C Dudley says the pace of interest-rate increases is likely to be shallow once the Fed starts to tighten, and recent weakness in the economy was largely the result of temporary conditions.

The Dow Jones industrial average notched its third record high close in a row on Wednesday, even as other market indexes ended lower.

This week, a white- haired woman spoke and the world sat up and listened.

The US stock market advanced for a fourth straight day, pushing the Standard & Poor’s 500 index to a record high.

The US Federal Reserve is in no rush to decide the appropriate size of its balance sheet, but if it ultimately shrinks it to a pre-crisis size, the process could take the better part of a decade, Fed chair Janet Yellen said yesterday.

Soothing words from US Federal Reserve Chair Janet Yellen have helped pull the stock market out of a morning slump, but internet companies and Whole Foods Market plunged, taking the Nasdaq down.

Janet Yellen has been sworn in to succeed Ben Bernanke, becoming the first woman to lead the US Federal Reserve in its 100-year history.

The US Senate confirmed Janet Yellen as the first woman to lead the Federal Reserve, elevating an advocate of fighting unemployment and a backer of the central bank’s efforts to spur the economy with low interest rates and massive bond purchases.

THE world economy should finally overcome its hangover from the global financial crisis this year as growth picks up and house prices rise, but reduced US monetary stimulus will pose a challenge.

The incoming president of the US Federal Reserve, Janet Yellen, gave a strong defence of the central bank’s very loose monetary policy before a Senate Banking Committee hearing last week.

Janet Yellen, President Barack Obama’s nominee to lead the Federal Reserve, thinks the US central bank has “more work to do” to help an economy and a labour market that are still under-performing.

It is official, then. Janet Yellen is to become the first female ‘chairman’ of the US central bank next February and as such, she will be in a position to affect all our lives.

JANET YELLEN, President Barack Obama’s pick to lead the Federal Reserve, combines a solid reputation as an economist with a keen interest in communication — fitting for someone who once joked that her dinner guests should expect a discussion of economics.

The Federal Reserve has decided against reducing its stimulus for the US economy.

Former US treasury secretary Lawrence Summers has withdrawn from consideration to be chairman of the Federal Reserve, saying it would hurt the nation for him to go forward with what would be a contentious confirmation before the US Senate.

Global markets took cheer after a key player pulled out of the race to head America's central bank, lifting hopes that the US will keep the printing presses rolling.

President Barack Obama has said his nominee for Federal Reserve chairman will be someone who embraces the central bank’s dual mandate to promote price stability and maximum employment, and he has narrowed his choice “to some extraordinarily qualified candidates”.

US stocks ended a lacklustre week with a moderate decline today as higher oil prices weighed on investors’ already rickety sentiment and Treasuries rallied amid concerns about a meltdown in the subprime mortgage market.

OIL prices fell to five-month lows yesterday lifting stocks, while the dollar rose to six-week highs in a mostly technical rebound.

US stocks fell for the second day in a row today after warnings from several home builders raised investors’ concerns about an economic slowdown and comments about inflation from San Francisco Federal Reserve President Janet Yellen offered little comfort.