Yellen answers questions from reporters
- We haven't speculated on fiscal stimulus with these moves, we have plenty of time to react
- The removal of 'only' in gradual hikes statement is 'minor', shouldn't be over-interpreted, it's not a significant change
- Has met a couple times with Mnuchin, briefly met Trump
- Neutral rate would normally be about 1% above inflation but might be equal to inflation now
She got defensive about Fed communication. She's done that before. The Fed has to take responsibility for market pricing and mispricing. You can't blame the market.
As she continued, she said "perhaps market participants have been influenced by the Fed hiking just once in 2015 and 2016". At least that's a small step towards taking some of the blame.
- High stock prices a signal of easier financial conditions
- Shift in sentiment is notable and obvious
- Many businesses still displaying wait-and-see approach
- Points to jobs as a key factor for hike
