Posted by on June 27, 2017 5:04 pm
Tags: , , , , , , , , , , , , ,
Categories: British Academy Business Capital Markets economics Economy Economy of the United States federal reserve Federal Reserve Board Federal Reserve System Fellows of the Econometric Society Financial services Guggenheim Fellows Janet Yellen US Federal Reserve yellen

Confused by Yellen’s direction? You’re not alone.

It’s not just a state of mind, that’s the name of the latest slideshow by the economics team at ING bank…

… which shows how much confusion there is in a market which refuses to agree with the Fed’s hiking forecast (for good reason) and which is the biggest question in capital markets these days: will the Fed continue on its aggressive tightening path even without the inflation needed to justify it, or will it do what it did the last time it laid out a tightening plan which promptly imploded in early 2016.

Conveniently, in a few minutes Janet Yellen will hopefully address all the lingering open questions when she speaks in London at a conversation forum with Nicolas Stern, who is the President of the British Academy and an economics professor. The topic is ‘global economic issues’

“Stern and Federal Reserve Board Chair Janet Yellen will have a wide-ranging discussion about global economic issues.”

The forum will be a moderated question-and-answer session with the audience. As the Fed considers the timing of another interest-rate increase and the start of its plan to wind down its asset holdings, economists are hoping for clarity whether the Fed will remain data-independent as it has been until now (seeing the recent plunge in inflation as transitory), or will she hint that the Fed may abort the rate hiking cycle prematurely once again if the recent economic weakness accelerates.

As a reminder, Yellen’s last public remarks were at June 14 press conference in Washington, when she said growth in the U.S. appears to have rebounded.

Watch it live in the embed below (click on the link for the live feed).

Leave a Reply

Your email address will not be published. Required fields are marked *