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18 Mar 2015
Yellen not patient, in no rush either
FXStreet (Córdoba) - Federal Reserve Chair Janet Yellen said the FOMC has not decided on the timing of the first rate hike.
In a press conference following FOMC decision to leave rates unchanged, Yellen said that removing the word patient from the Fed’s statement doesn’t mean the Fed will be impatient in respect to its first rate hike.
She reiterated the first hike will be data dependent. When asked what it will take to make the Fed “confident” that low-inflation is on track to return to its 2% target, she said that there is no one single rule and they will be watching a wide range of data.
Overall, Yellen sounded pretty ambiguous. Fed removed the word “patient” but implied patience anyway.
She said the Fed didn't want to rule out rate hike after April by saying it was “unlikely”. She added a rate hike will not necessarily occur in June, although it can’t be ruled out either. Yellen however commented that is not appropriate to provide calendar-based rate guidance and that the Fed shouldn’t provide certainty about rates outlook.
Yellen also addressed the issues generated by a stronger dollar, such as keeping inflation low and weakening exports growth. However she added a strong USD reflects a strong economy.
In a press conference following FOMC decision to leave rates unchanged, Yellen said that removing the word patient from the Fed’s statement doesn’t mean the Fed will be impatient in respect to its first rate hike.
She reiterated the first hike will be data dependent. When asked what it will take to make the Fed “confident” that low-inflation is on track to return to its 2% target, she said that there is no one single rule and they will be watching a wide range of data.
Overall, Yellen sounded pretty ambiguous. Fed removed the word “patient” but implied patience anyway.
She said the Fed didn't want to rule out rate hike after April by saying it was “unlikely”. She added a rate hike will not necessarily occur in June, although it can’t be ruled out either. Yellen however commented that is not appropriate to provide calendar-based rate guidance and that the Fed shouldn’t provide certainty about rates outlook.
Yellen also addressed the issues generated by a stronger dollar, such as keeping inflation low and weakening exports growth. However she added a strong USD reflects a strong economy.