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Fed's Yellen testimony: Balance sheet reduction will likely begin this year
Additional headlines from the pre-released text of the speech by Fed Chairwoman Janet Yellen's first part of 2-day semi-annual testimony in Congress:
- Inflation-adjusted gross domestic product is currently estimated to have increased at an annual rate of only 1-1/2 percent in the first quarter
- Recent lower readings on inflation are partly the result of a few unusual reductions in certain categories of prices
- With further gradual adjustments in the stance of monetary policy, the economy will continue to expand at a moderate pace over the next couple of years
- Considerable uncertainty always attends the economic outlook
- Possible changes in fiscal and other government policies here in the United States represent another source of uncertainty
- Changing the target range for the federal funds rate is our primary means of adjusting the stance of monetary policy
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
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