Yellen crossing the wires (dollar strength) "Uncertainties strengthen case for gradual rate hikes" - RTRS
|Fed's Chairwoman Janet Yellen is crossing the wires and comments so far as follows, (that are centralist/dovish . . .but seeing some dollar strength):
- Gradual approach to hikes particularly appropriate in light of subdued inflation, low neutral rate
- Imprudent to leave rates on hold until inflation reaches 2%
- Can still achieve 2% target goal even if fed is underestimating slack or overestimating inflation expectations
- Low inflation likely due to transitory factors, sees many uncertainties
- Downward pressure on inflation could prove unexpectedly persistent
- Considerable' odds that inflation won't stabilize at 2% over next few years
- Risk that inflation expectations are not as well-anchored as they appear
- Data suggests labour mkt is healthy, without substantial slack & not overheated
- Evidence on labour mkt not definitive, says Fed must be 'open-minded'
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