The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

In this , Tuesday, Feb. 11, 2014, file photo, Federal Reserve Chair Janet Yellen listens while testifying on Capitol Hill in Washington.
In this , Tuesday, Feb. 11, 2014, file photo, Federal Reserve Chair Janet Yellen listens while testifying on Capitol Hill in Washington.
(Cliff Owen/AP)

Anxious over the Fed’s new tone? Don’t be

The stock market took a while to adjust to Federal Reserve tapering of bond purchases last year. Is it now going to need some time before it accepts interest rate hikes?

Judging from Wednesday’s near-hysterical reaction to one brief comment from Fed chair Janet Yellen, it appears so. Ms. Yellen, in a press conference that followed the release of the central bank’s monetary policy statement and economic assumptions, said that rate hiking could start six months after the Fed ends its bond-buying program, known as quantitative easing, later this year.