Has Fed missed its chance? - ANZ

In respct of Yellen, analysts at ANZ explained that t wasn’t how the playbook was meant to run.

Key Quotes:

"The US data was meant to keep turning a corner, and together with some likely reassuring comments from Yellen, see the market go into the Fed’s upcoming meetings with reasonable odds priced for another hike.

Friday’s poor jobs data scuttled those plans and also meant Yellen’s scheduled speech took on quite a different meaning. In the end she was non-committal. She felt the latest jobs data was “disappointing”, although noted that other labour market indicators had been more positive, particularly the increase in average hourly earnings.

And while she still believes “the federal funds rate will probably need to rise gradually over time” she made no reference to the “in coming months” timeframe used only a few days earlier. June seems off the table, but a July hike is not out of the question if the US data plays ball. From a New Zealand perspective, let’s hope the Fed hasn’t missed its chance."