Federal Reserve: Game on? - ANZ

Analysts at ANZ explained that Janet Yellen gave a hat tip to a March rate hike in her speech. 

Key Quotes:

"She said that if the economy continues to evolve as expected this month “...a further adjustment of the federal funds rate would likely be appropriate.” During the Q&A she explicitly mentioned that the outlook does not incorporate a fiscal boost and that three rate hikes appear to still be appropriate this year. 

Separately, Stanley Fischer said that he “strongly supports” the advice given by FOMC members over the past weeks and that there was a conscious effort to raise market expectations for a March hike. If a significant fiscal spend gets factored into their forecasts the pace of rate hikes will likely intensify. Notably, Chair Yellen underscored the importance of being forward looking by “focusing on the medium-term outlook – roughly two or three years out – when making policy decisions.” "