Highlights of Janet Yellen's Humprey Hawkins prepared text:

Last week in a speech, Yellen said it would be appropriate to begin raising rates "at some point later this year". She repeated that line.


  • Exports being held down by dollar, weak growth abroad
  • FOMC expects growth to strengthen over rest of 2015
  • Spending has picked up, May and June car sales strong
  • Some job market slack remains, not yet full employment
  • Large banks have low direct exposure to Greece
  • Pace of tightening more important than liftoff timing
  • US economy may 'snap back' faster as headwinds fade
  • Foreign development poses 'some risks' to US growth

The US dollar is higher on the text with most wires leading with the line that it would be appropriate to hike at some point this year but that's old news. The most hawkish line is that growth may 'snap back' but that's hardly screaming signal to buy USD.

The Fed separately released a report saying three were no liquidity problems in the bond market.

"While market commentary increasingly pointed to a possible deterioration in liquidity in these markets, a variety of liquidity metrics -- including bid-asked spreads and bid sizes -- have displayed no notable signs of liquidity pressures over the past half-year," the report said.

Yellen will take questions from Congress for hours after the testimony and then do it again tomorrow. Be prepared for an endless stream of Yellen headlines but she has a remarkable ability to talk without saying anything remotely market moving.