Markets & Economy

Janet Yellen is on the right track, and the Fed’s basic science is sound

When economy is in transition, take it slow unless transparently behind the curve

We interrupt coverage of Flight 370 for brief news from the world ...Interest rates rose this week on receding worry about Ukraine, and in the aftermath of the first Fed meeting with Janet Yellen in the chair, including her first public mistake (may as well get it over with).Last week a sanction war seemed imminent, one likely to suppress global economic growth. Chancellor Merkel on March 13: Annexation of the Crimea "... would not only change the European Union's relationship with Russia. No, this would also cause massive damage to Russia, economically and politically."Then yesterday, Merkel channeled Neville Chamberlain without evident embarrassment: “We will make very clear that in the case of further escalation we will be ready to introduce economic sanctions.”At that, Vladimir must be laughing out loud in the brief digestive phase of a free lunch, soon to renew munching at Ukraine. Although there is no easy way for Europe to protect Ukraine, the means of Vladim...

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