Janet Yellen: Fed To Stay The Course On Taper

By | February 11, 2014

Janet Yellen, in her first speech as new Fed chair “stayed the course” on the Taper:

  • *YELLEN SAYS FOMC LIKELY TO CONTINUE QE TAPER IN MEASURED STEPS
  • *YELLEN SAYS RECOVERY IN LABOR MARKET IS `FAR FROM COMPLETE’
  • *YELLEN SAY FED TO `CONTINUE TO MONITOR FOR EMERGING RISKS’
  • *YELLEN: MAIN RATE LIKELY TO BE LOW WELL PAST 6.5% JOBLESS RATE

Of course, the Q&A (and hawkish follow-up panel) may well be the “common knowledge” setting moment for today but for now, the Taper is on and forward-guidance

On Growth…

*YELLEN PREDICTS MODERATE GROWTH IN ECONOMY, JOBS IN 2014, 2015
*YELLEN SAYS ECONOMY GAINED MORE TRACTION IN 2ND HALF 2013

On Inflation…

*YELLEN EXPECTS INFLATION TO MOVE TOWARD 2% `OVER COMING YEARS’
*YELLEN SAYS SOME SOFTNESS IN INFLATION LIKELY TO BE TRANSITORY

On Jobs…

*YELLEN SAYS `TOO MANY AMERICANS REMAIN UNEMPLOYED’
*YELLEN SAYS UNEMPLOYMENT RATE DOESN’T GIVE FULL VIEW OF JOBS
*YELLEN SAYS RECOVERY IN LABOR MARKET IS `FAR FROM COMPLETE’
*YELLEN: MAIN RATE LIKELY TO BE LOW WELL PAST 6.5% JOBLESS RATE
*YELLEN SAYS FOMC LIKELY TO CONTINUE QE TAPER IN MEASURED STEPS
*YELLEN REITERATES SHE `STRONGLY’ SUPPORTS CURRENT FOMC POLICY

On Taper

*YELLEN `COMMITTED TO ACHIEVING BOTH PARTS OF OUR DUAL MANDATE’
*YELLEN SEES `GREAT DEAL OF CONTINUITY’ IN MONETARY POLICY
*YELLEN SAYS BOND PURCHASES BY FED `NOT ON A PRESET COURSE’
*YELLEN: HIGHLY ACCOMMODATIVE POLICY APPROPRIATE AFTER QE ENDS

On EM Risks…

*YELLEN: GLOBAL MARKET SHIFTS NOT A BIG RISK TO U.S. OUTLOOK
*YELLEN SAY FED TO `CONTINUE TO MONITOR FOR EMERGING RISKS’

 

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