|

Fed's Yellen: 'Prudent' to adjust stance of monetary policy gradually

Janet Yellen,  chair of the Board of Governors of the Federal Reserve, speaking at the Stanford Institute for Economic Policy Research, notes that it is 'prudent' to adjust the stance of monetary policy gradually

Key Quotes

Inflation increasing to 2% over the next 2 years 

Unwise to allow US economy to run persistently 'hot'

Determining how best to adjust rates to foster strong job growth, low inflation won't be easy

Labor utilization close to estimated long-run level

Inflation likely to reach fed's 2-pct goal over next couple of years

Expects further strengthening of labor market in coming months

Fed policy is not behind the curve

Simple monetary policy rules, like the Taylor rule, provide useful guidance, but can be problematic

Surge in inflation from suddenly overheating job market unlikely

Stance of monetary policy remains modestly accommodative

Downward pressure of fed's balance sheet on rates is expected to decline

Fiscal policy may affect outlook, rate path, but uncertainties remain

Author

Ivan Delgado

Ivan Delgado

Independent Analyst

Established in the Asian continent since 2009, Ivan studied a degree in Business at the University Pompeu Fabra (Barcelona), while also earning a postgraduate degree in Business Administration.

More from Ivan Delgado
Share:

Editor's Picks

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.
 

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.