Yellen a shade more hawkish than usual – Westpac

Yellen a shade more hawkish than usual – Westpac
FXStreet (Guatemala) – Analysts at Westpac Banking Corporation explained that it does feel as if markets have already started to move on here to price the next big risk event i.e. FOMC lift-off.

Key Quotes:

“Chair Yellen certainly did no harm and if anything her comments were a shade more hawkish than we have been accustomed too, especially when she noted that, “we now think that the economy can not only tolerate but needs higher rates”. She again noted that “what matters for financial conditions and the broader economy is the entire expected path of interest rates, not any particular move, including the initial increase, in the federal funds rate”. “

“That still leaves me thinking that the FOMC is less concerned about the impact of the first or second hike. We still expect 2x25bps this year and are still expecting to see 2+ month highs for the DXY up above 98 in the next week or so.”
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Source: FXStreet