Yellen answers questions after her speech:
- Economy has proven 'remarkably resilient'
- Global developments significant for US outlook
- Exports still a small part of US economy but we are exposed to risks
- Abnormally high levels of involuntary part time jobs point to jobs market slack
- I cast some doubt on how much one should read 1.7% core inflation as an uptrend
- The Committee did rethink, in a sense, the policy path (names global growth)
- FOMC isn't seeing secular stagnation but expectations have been falling
- We are forecasting an improvement in productivity growth
- Monetary policy has been under a financial burden from fiscal policy
- I couldn't have imagined 6-7 years ago we would still be employing similar policies
- It would be certainly helpful to see fiscal policy play a larger role
Yellen spoke at length about the reaction function of the Fed and it tied in with what we explained yesterday.
