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30 Mar 2015
Yellen not expecting tightening cycle to be anything near traditional - ANZ
FXStreet (Bali) - After Friday's speech, ANZ Research Team concludes that it was clear the Fed Chair Janet Yellen is not expecting its upcoming tightening cycle to be anything near “traditional”.
Key Quotes
Fed Chair Janet Yellen spoke on Friday and it was clear from her comments that neither she, nor the FOMC more broadly, is expecting its upcoming tightening cycle to be anything near “traditional”.
"While she stated that a lift in the fed funds rate was likely later this year, she noted that “the actual path of policy will evolve as economic conditions evolve, and policy tightening could speed up, slow down, pause, or even reverse course depending on actual and expected developments in real activity and inflation”." In other words, the tightening process would be gradual and “data dependent”.
Key Quotes
Fed Chair Janet Yellen spoke on Friday and it was clear from her comments that neither she, nor the FOMC more broadly, is expecting its upcoming tightening cycle to be anything near “traditional”.
"While she stated that a lift in the fed funds rate was likely later this year, she noted that “the actual path of policy will evolve as economic conditions evolve, and policy tightening could speed up, slow down, pause, or even reverse course depending on actual and expected developments in real activity and inflation”." In other words, the tightening process would be gradual and “data dependent”.