- Says ‘significant slack remains in labor markets’
- Normalization talks don’t mean imminent policy change
- Repeats low rates sen for considerable period post-QE
- Bond buying likely to end after October meeting
- Some lower-rated corporate debt values appear stretched
- Too many Americans unemployed
- Increases in Fed funds rate likely would occur sooner and be more rapid than envisioned if labor market conditions continue to improve more quickly than anticipated
- “Considerable uncertainty” surrounds FOMC projections for economic growth, unemployment and inflation
Yellen is saying ‘wait and see’ and offered nothing particularly hawkish. The key is the bolded headline, which was highlighted by Reuters but not Bloomberg so not all traders might have seen it. It is something that the hawks could cling to. Still, anyone betting on the US dollar would have hoped for more.
