Yellen’s statement was a rehash of the latest FOMC communique - Rabobank

Stefan Koopman, Market Economist at Rabobank, notes that the Fed Chair Yellen’s prepared statement to the Joint Economic Committee of Congress was a rehash of the FOMC statement of November 2 and the minutes of the September 20-21 meeting.

Key Quotes

“She said that the Committee judged that the case for a hike had continued to strengthen and that this could well become appropriate relatively soon if incoming data provide some further evidence of continued progress toward the Committee's objectives.”

“During the Q&A, Yellen confirmed that she intends to serve out her term as Fed Chair until early February 2018, pushing back against Donald Trump, who has, in his wisdom, criticised the Fed for keeping rates too low for too long. With respect to the impact of the election outcome on the Fed’s rate path she said that there was still a lot of uncertainty about fiscal policy next year and its inflationary consequences.”