Analysts at ANZ explained that the text of Yellen’s testimony reflected the pragmatism of the Fed: growth is predicted to continue but the Fed is closely monitoring events and monetary policy is not on a pre-set course. Key Quotes: "Financial conditions have tightened recently given weakness in equity and credit markets, but lower oil prices and bond yields provide some offset. Monetary policy is data dependent and the effect of recent volatility on output will depend on whether it proves persistent or not. In our view, the FOMC will cut its inflation outlook and probably tweak its GDP forecasts and its ‘dot plot’ in March. The question is – will it be one or two hikes taken out" For more information, read our latest forex news.