Yellen: Fed needs to wait and see what happens - ANZ

Analysts at ANZ explained that the Fed Chair Yellen’s testimony to the Joint Economic Committee painted a reasonably upbeat assessment of the economy, but one that still requires only gradual rate increases. Of more interest was her post- election assessment.

Key Quotes:

"In a nutshell, Yellen said that once the economic landscape becomes known, the Fed will factor that into its assessment, but for now there remains huge uncertainty.

Yellen acknowledged that markets have moved to factor in higher growth and inflation and therefore higher fed funds rates, but the Fed needs to wait and see what happens.

Yellen confirmed that she fully intends to see out her full term which ends in January 2018. However, she said she does not want to see the post GFC financial regulation rolled back, which would seem to put her at odds with the incoming Trump administration, which campaigned on winding back Dodd-Frank."