17 Jul 2014
Yellen signals Fed debating framework for policy normalization - Deutsche Bank
FXStreet (Łódź) - Anthony Ip from Deutsche Bank points out that the Yellen’s House Committee testimony hasn't been much different from the Tuesday Senate comments apart from the indication that the Fed is continuing to discuss the framework for policy normalization.
Key quotes
"Yellen said more details will be given on this topic later this year."
"In other bits of the Q&A, the Fedchair responded to a Republican proposal tying rate increases to a mathematical formula, for example the Taylor rule, saying that it’s 'utterly necessary for us to provide more monetary policy accommodation that those simple rules would have suggested'."
"On the topic of markets, the Fedchair classified the threats to financial stability as at a 'moderate, not high level'."
"In treasuries, the curve continued to flatten, though this was more driven by a rally in the long-end than any hawkish carryover from Yellen’s Tuesday Senate comments."
Key quotes
"Yellen said more details will be given on this topic later this year."
"In other bits of the Q&A, the Fedchair responded to a Republican proposal tying rate increases to a mathematical formula, for example the Taylor rule, saying that it’s 'utterly necessary for us to provide more monetary policy accommodation that those simple rules would have suggested'."
"On the topic of markets, the Fedchair classified the threats to financial stability as at a 'moderate, not high level'."
"In treasuries, the curve continued to flatten, though this was more driven by a rally in the long-end than any hawkish carryover from Yellen’s Tuesday Senate comments."