Federal Reserve Chair Janet Yellen speech on monetary policy at San Francisco Fed conference.
In prepared remarks, Fed chair Yellen stated that a rate hike may well be warranted later this year based on economic conditions. She sees rate hikes as gradual and not on a regular schedule. Depending on data, rate changes could speed up, slow down, or even reverse. Yellen indicated that a significant inflation pick up is not a precondition for a rate hike. She sees current policy as accommodative. Due to long lags in the impact of monetary policy, Yellen said that the Fed should not wait too long for raising rates. The rise in the dollar is on her radar but is indicated to have modest impact. Comments appear to be preparing for a very modest rate hike in June or September. Comments appear to be in line with market expectations with little reaction.
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