Important data from the testimony of Janet Yellen in front of the Congress

12.07.2017 / 17:52

Rating:

Current Situation:

The job market is in good shape and still have some space for improvement. The unemployment percent continue to fall with economy growing with moderate pace. Household expenses continue to grow, but supported by the stable employment.

Even that inflation continue to trail below the FED's target of 2%, this is a function of some calculations that soon will not be considered and then inflation will be up. Moderate risks continue to exists.

FED continue to think that the economy will grow with slow to moderate pace within the next 2 years and unemployment will gradually improve.

FED's plans for the balance sheet is gradual decrease over time. The balance will be lowered from current levels but it will not be less than at crisis levels. The balance sheet will not be lowered drastically , nor it will be used as a tool to tighten monetary policy. The main instrument for this will be the interest rates, which will increase gradually. Yellen said that FED's balance sheet will likely include mainly treasuries.

Source: Bloomberg Pro Terminal

Trader - S. Fuchedzhiev

Varchev Traders

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Important data from the testimony of Janet Yellen in front of the Congress

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