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24 Feb 2015
BNP Paribas: Yellen’s speech to echo inflation concerns – eFXnews
FXStreet (Barcelona) - The eFXnews Team shares BNP Paribas’ view that today’s Yellen’s speech will echo some of the concerns about low inflation as seen in the FOMC minutes.
Key Quotes
“We expect today’s monetary policy testimony from Fed Chair Yellen to echo some of the concerns about very low inflation reflected in the latest FOMC minutes, but to also emphasize that the committee is getting closer to achieving its labour market goals.”
“The Fed Chair is unlikely to give too much detailed guidance on the timing of the first rate hike or the removal of the ‘patient’ phrase from forward guidance, continuing instead to stress data dependency.”
“However, we think her remarks will be generally consistent with current market pricing for rate hikes beginning in late Q3/early Q4.”
“Since January 28, both employment and inflation expectations have risen. This could encourage rebuilding of long USD positions which have been reduced from the levels seen heading into 2015.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“We expect today’s monetary policy testimony from Fed Chair Yellen to echo some of the concerns about very low inflation reflected in the latest FOMC minutes, but to also emphasize that the committee is getting closer to achieving its labour market goals.”
“The Fed Chair is unlikely to give too much detailed guidance on the timing of the first rate hike or the removal of the ‘patient’ phrase from forward guidance, continuing instead to stress data dependency.”
“However, we think her remarks will be generally consistent with current market pricing for rate hikes beginning in late Q3/early Q4.”
“Since January 28, both employment and inflation expectations have risen. This could encourage rebuilding of long USD positions which have been reduced from the levels seen heading into 2015.”
This content has been provided under specific arrangement with eFXnews.