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What to expect from Yellen's testimony
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Loading...Federal Reserve Chair Janet Yellen testifies before Congress this week as President Donald Trump seems to tone down his "America first" rhetoric.
Yellen is due to give semi-annual testimony to the Senate on Tuesday and the House of Representatives on Wednesday.
Trump has endorsed the "one-China" policy after seemingly flirting with Taiwan.
Currency factors reportedly were not an issue in Trump's reportedly "smooth" meeting this weekend with Japanese Prime Minister Shinzo Abe.
That has helped alleviate some fears of a trade war, allowing the dollar to resume its upward trend.
Some analysts reckon that If Trump goes ahead with his tax import plan that could fuel imported inflation.
Yellen is expected to reiterate the need for gradual monetary tightening as the U.S. economy picks up but with inflation still off target.
The market sees no further hikes before the June Fed meeting and only two hikes this year.
Analysts believe more clarity in Trump's stimulus plans is needed before the Fed starts to take this on board.
Yellen is expected to be asked about her future at the Fed as her mandate ends early next year.
Analysts expect Trump to confine his influence over the Fed to the power of appointment of new members.
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