Fed Chair Janet Yellen speaks at the Economic Club of New York

  • Concerned by some low inflation readings
  • Fed has 'considerable scope' for stimulus if needed
  • Global developments and risks led to project slower path of rate hikes
  • Inflation likely to remain below Fed target this year
  • Current neutral real interest rate likely close to zero but will rise as economy improves, allowing gradual increases to Fed target rate
  • Global turmoil impact likely low on the US because it kept down interest rate hike expectations
  • Another oil price drop could hurt global economy
  • Longer run unemployment rate may be lower than 4.8%

The US dollar is getting beaten up, down 40-70 pips across the board. She's maintained her dovish tone, 100%.

In my FOMC preview I wrote:

"My guess is that fast money will be looking for something upbeat or more hawkish from Yellen but she will fail to deliver."