San Francisco Fed chief Yellen says the formative event for current US policy makers was the high inflation of the 1970s. She says the FOMC will not repeat the policy mistakes of that era.
That is music to the bond market’s ears, and by extension, to the Chinese policymakers in Washington for talks with US officials.
If the Fed is true to Yellen’s word, the dollar will benefit long-term. It will be years before we know the outcome, however.
EUR/US continues to find offers in the 1.4170/80 area, though stocks and commodities are edginf up from their lows.
