Highlights of Federal Reserve Chairman Janet Yellen's speech on May 22, 2015:
- Gradual pace of tightening likely after liftoff
- 'We are not there yet' on Fed's employment goals
- Yellen says rate rise at some point this year is appropriate
- Expects economy to strengthen after weak Q1
- Appropriate to raise rates this year if economy continues on current path
- Hike path will be gradual, with several years before rates go back to normal
- Believes inflation will rise toward target as economy continues to improve
- Economic headwinds beginning to fade, leaving it well positioned for growth
- Weak start to 2015 the result of transitory factors, "statistical noise" should give way to moderate growth for the rest of the year
- Labor market still not full healed as seen in low wage growth, high number of sidelined workers
There is no plan for Yellen to host a Q&A later.
Nothing stands out as a massive headline here. But for me, Yellen remains optimistic and that's bullish for the US dollar. If there are a few good US economic indicators, the idea of a September rate hike will get a lot of attention.
