Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Mission Accomplished For Janet Yellen

Published 2017-12-14, 08:23 a/m
Updated 2017-05-14, 06:45 a/m

It’s mission accomplished for outgoing U.S. Federal Reserve Chair Janet Yellen, as she delivered the much-anticipated 25-bp key rate increase yesterday. What’s more, she also confirmed that the U.S. economy will continue to grow at a good clip, raising the anticipated growth rate for 2018 to 2.5%. Turning to jobs, gradual gains are also to be expected, which could ultimately favour upward pressure on wages and by extension support inflation. Given this context, the forecast for three key rate increases in 2018 is maintained with a 68% chance of the next one coming in March.

Although on the whole, one would think that the greenback would be propelled upward by the news, it appeared rather hesitant at first, then dropped against all currencies. The reaction was similar in terms of U.S. bond yields while stock markets closed in the green. Clearly, markets were hoping for a much more aggressive statement and expectations for inflation.

On the menu today are U.S. Retail Sales for November at 8:30 a.m. followed at 12:25 p.m.by a speech by Bank of Canada Governor Stephen Poloz to the Canadian Club of Toronto.

Have a great day! Stéphane Goulet

Range of the day: 1.2770 – 1.2880

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.