Janet Yellen speech: Current slope of yield curve is well within historical range

Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, is responding to questions from the press after delivering her remarks on the policy outlook, with key quotes (via Reuters) found below.

One possible reason for low inflation is that long-run sustainable unemployment rate is lower.

I expect to maintain washington dc as her base after leaving Fed.

Financial stability risks from bitcoin are limited.

Don't see significant exposure of core financial institutions to threats from bitcoin value fluctuations.

Current slope of yield curve is well within historical range.

There are good reasons to think relationship between yield curve and business cycle may have changed.

Yield curve likely to be flatter than in the past.

Odds of recession are low.

Key notes

US Dollar Index drops to 1-week lows after Fed meeting.

The US Dollar dropped sharply after the FOMC decision to raise rates and it continued to slide during Yellen’s press conference. Equity prices remained near the top while US bond yields moved to the downside. Gold jumped, rising above $1,255/oz.

GBP/USD retakes 1.34 handle.

GBP/USD has extended the post-Fed rally to 1.3423 (10-day MA) possibly due to fears that a potential delay in the tax reform could force the Fed to go slow with the rate hikes.

About Janet Yellen

Janet L. Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3, 2014, for a four-year term ending February 3, 2018. Dr. Yellen also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body.