More comments from Yellen in the press conference:
- The rise in labor force participation is heartening
Yellen says the unemployment-inflation link still holds but seems to agree that it's softened. I've been arguing forever that it's easy to export jobs when wage demand rise. We see it happening in practice over and over as factories and IT are moved offshore.
- Fed studying effects of negative rates in other nations
- Fed has a range of tools if it needs more accommodation
- Tools such as forward guidance available
- "In the unlikely event we need to add more accommodation"
And that's all she wrote. Yellen out.
