Yellen continues to answer questions
Some recent comments:
- Still data dependent
- Doubt we will have equally spaced hikes
- Downward revision in core inflation is because we've seen further appreciation of dollar
- Gradual does not be mechanical with regard tightening
- if inflation doesn't move as expected, will adjust policy
- we do pay attention to downside risks as well as upside risks
- Says demographics .2 considerable upside in housing
- US consumers and health your financial condition
- Expects to see faster wage growth
- Own forecast is higher core inflation
The EURUSD has moved back down.
The USDJPY is back up and making new session highs.
Right now, the markets are fighting it out. It is paying attention to technical levels, but what is clear is don't fall in love with anything at the moment. The market is digesting the information and quite frankly it may not know what to do until the data starts to flow. Even then, it will not fully be clear. The Fed will have to tell us more. I am not sure those questions have been fully answered yet.
The stocks are moving higher.
The S&P is up 31 to 2075 - trading at the highs. The Nasdaq is up 78 and is also trading at the high. The Dow is up near 250 and is also at the highs.
