If Labour Was The Only Criterion…
BNP Paribas | Feb 13, 2016 11:52PM ET
■ Janet Yellen made note of the financial market turmoil, but sought to put it into perspective while highlighting the dynamic job market.
■ The Fed maintains its analysis: growth will remain strong enough to absorb residual underemployment while inflation will gradually return towards the Fed’s 2% target. Global growth trends are the main downside risk to this scenario.
■ The Fed does not seem to have changed its plans. By reiterating that its decisions are data-dependent, Ms. Yellen did not close the door on any options for the March FOMC meeting. So will the Fed raise its key rates or not?
Fed Chair Janet L. Yellen spoke this week before the Congressional financial committees of both houses1. This long-awaited speech was the first time she had spoken since the press conference following December’s rate increase, and since the financial market turmoil of early 2016.
Ms. Yellen’s opening statements did not suggest a paradigm shift: the Fed continues to expect that growth will be strong enough to absorb residual underemployment and that inflation will return towards its 2% target in the medium term. The exceptional factors of low energy prices and the dollar’s appreciation would gradually put less of a strain on inflation trends, which are also likely to get support from the dynamic job market. This has been the Fed’s analysis for several months, and there is nothing new about the downside risks to this “ideal” scenario either. Indeed, global growth trends are the main risk factor.
If Labour Was The Only Criterion…
by Alexandra ESTIOT
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.