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."