Yellen’s testimony: Growing appetite for monetary policy tightening – Natixis

Analysts at Natixis provide afterthoughts on the Fed Chair Yellen’s testimony that took place before the Senate Banking Committee yesterday.

Key Points:

J. Yellen’s prepared remarks were more hawkish than expected signaling appetite for further monetary policy tightening in the near term.

We see this change of rhetoric as being consistent with our expectations that the Fed will speed up the pace of the tightening cycle later this year.

The next move is still expected in June.