Yellen answering audience questions after her speech

  • Rates won't move on predetermined path
  • Most participants see a gradual pace of hikes
  • Interest rate path will depend on incoming data
  • Forward guidance and QE worked in tandem
  • Impact of QE was to push down longer term rates
  • QE was adopted when economy was weak, post crisis
  • Economy on road to recovery

That headline will prove to be prophetic. I expect it will look much like the BOJ in 2007-08.