22 May 2015
Fed Yellen speech: No new guidance expected - RBS
FXStreet (Bali) - Fed Chair Yellen is due to speak on the economic outlook on Friday, notes Brian Daingerfield, FX Trading Strategist at RBS, adding that it is unlikely that Yellen will provide explicit guidance on policy.
Key Quotes
"Fed Chair Yellen is due to speak on the economic outlook tomorrow at 1:30 PM local time. The FOMC minutes on Wednesday did not reveal a significant change in tone relative to commentary from Fed speakers, and the data dependent stance means that FOMC members are likely unwilling to give any obvious signals about the expected timing of tightening."
"The FOMC minutes noted that “participants discussed the merits of providing an explicit indication, in post meeting statements … that the target range for the federal funds rate would likely be raised in the near term” but decided against such explicit guidance."
"That means that Chair Yellen is unlikely to give explicit guidance on policy, in either direction. The minutes did show FOMC members felt that the slowdown in the first quarter was likely due to transitory factors, but the discussion included debate over whether or not the slowdown could prove more pronounced. The key development in Chair Yellen’s speech should be hints as to where she lands on this debate."
Key Quotes
"Fed Chair Yellen is due to speak on the economic outlook tomorrow at 1:30 PM local time. The FOMC minutes on Wednesday did not reveal a significant change in tone relative to commentary from Fed speakers, and the data dependent stance means that FOMC members are likely unwilling to give any obvious signals about the expected timing of tightening."
"The FOMC minutes noted that “participants discussed the merits of providing an explicit indication, in post meeting statements … that the target range for the federal funds rate would likely be raised in the near term” but decided against such explicit guidance."
"That means that Chair Yellen is unlikely to give explicit guidance on policy, in either direction. The minutes did show FOMC members felt that the slowdown in the first quarter was likely due to transitory factors, but the discussion included debate over whether or not the slowdown could prove more pronounced. The key development in Chair Yellen’s speech should be hints as to where she lands on this debate."