Janet Yellen spoke as part of a panel that included BOJ Governor Kuroda, PBOC Governor Zhou and ECB's Vice President Vitor Constancio
Yellen:
- "The biggest surprise in the U.S. economy this year has been inflation"
- "My best guess is that these soft readings will not persist, and with the ongoing strengthening of labor markets, I expect inflation to move higher next year"
- "Economic activity in the United States has been growing moderately so far this year, and the labor market has continued to strengthen"
- "While the effects of the hurricanes on the U.S. economy are quite noticeable in the short term, history suggests that the longer-term effects will be modest and that aggregate economic activity will recover quickly"
In summary it sounds like Yellen has not changed her tune on slow rate hikes and further balance sheet reduction to come.
There was no specific indication from her on timings of moves in 2017, as usual.
Happy Monday!
