Research Team at Deutsche Bank, suggests that in terms of what Yellen said exactly, the main focus was on her comment that ‘given the risks to the outlook, I consider it appropriate for the committee to proceed cautiously in adjusting policy’. Key Quotes “This was quickly followed up by the Fed Chair also making mention to the fact that ‘this caution is especially warranted because, with the federal funds rate so low, the FOMC’s ability to use conventional monetary policy to respond to economic disturbances is asymmetric’. Yellen also highlighted that the outlook for US inflation had become ‘somewhat more uncertain’ and that recent readings on the US economy are ‘somewhat mixed’. The Fed Chair even went as far as to say that the committee has ‘considerable scope’ to ease policy if necessary and that ‘while these tools may entail some risks and costs that do not apply to the federal funds rate, we used them effectively to strengthen the recovery from the Great Recession, and we would do so again if needed’. Both China and volatility in Oil prices were also made mention to several times as risks to the US outlook.” For more information, read our latest forex news.