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Yellen - Lower path of the federal funds rate would be appropriate if economy were to...

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Fed’s Yellen, in her testimony to congressional committee, said a lower path of federal funds rate would be appropriate if the economy were to disappoint going ahead.

    Yellen said, “Financial conditions in the United States have recently become less supportive of growth, with declines broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar."

    Key quotes on Inflation

    Inflation continues to run below the (FOMC) Committee's 2 percent objective

    The low average pace of inflation can be traced to earlier steep declines in oil prices and in the prices of other imported goods

    The Committee expects inflation to remain low in the near term

    Key Quotes on interest rate

    FOMC participants' projections of the appropriate federal funds rate over the next three years generally shifted to lower values

    The median projection now stands at 1.4 percent at the end of 2016, 2.4 percent at the end of 2017, and 3.3 percent at the end of 2018

    Key Quotes on labor market

    Unemployment rate fell to 4.8 percent in January, 0.8 percentage point below its level a year ago

    These measures remain above the levels seen prior to the recession, suggesting that some slack in labor markets remains

    Key Quotes on global economy

    Foreign economic developments, in particular, pose risks to U.S. economic growth

    Low commodity prices could trigger financial stresses in commodity -exporting economies
    For more information, read our latest forex news.
     

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