Yellen opening statement Sept 20
- Low inflation doesn't reflect broad economic conditions
- Payrolls may be impacted in Sept by hurricanes
- Exports have picked up on stronger global economy
- Business investment has picked up
- Our understanding of forces behind inflation is imperfect
- Effects holding down inflation should be transitory
- Fed prepared to adjust monetary policy as needed to get back to 2%
- Economy will warrant continued, gradual rate hikes
- Policy is not on a pre-set course
- Balance sheet will decline gradually and predictably
- Fed funds will not have to rise much further to get to neutral stance
- Full text of the opening statement
"We don't understand how inflation works," would be more accurate.
The dollar is on an absolute rip, I wrote about why here.
