Banks lead FTSE higher on Yellen's hawkish tone
- Author: Zachary Reyes Feb 18, 2017,
Feb 18, 2017, 12:48
In the past three decades, those in "the bottom half of income distribution have seen no real wage increases", while "disproportionate gains have gone to those at [the] high end of wage distribution", Yellen said.
'At our upcoming meetings, the committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate, ' she said. Australian dollar earlier in the Asian session powered up to multi-year peaks against the yen, Swiss franc and euro as investors poured money into higher-yielding assets after data showed a surprise dip in Australia's unemployment rate. Core retail sales, which exclude auto and gasoline categories, climbed 0.7% in January, beating forecasts of a 0.4% uptick.
The Bureau of Labor Statistics reported Wednesday that the Consumer Price Index jumped 0.6 percent in January , the largest increase since February 2013.
Manufacturing activity surged in the NY region in February, according to the Empire State general business conditions index released today.
Analysts caution, though, that Yellen may remain mum in her assessment of the possible consequences of Trump's plans given that the details remain mostly unknown.
The MSCI All-Country World Index approached a record and European stocks headed for the longest winning streak since July 2015 after United States benchmark indexes reached fresh highs.
As always, she'll sketch a picture of how she expects the economy to fare in coming months and how the Fed's interest rate policy may unfold.
Trump and congressional Republicans want to roll back some of the rules imposed on USA banks in the aftermath of the financial crisis. Her testimony before a Senate committee Tuesday (and a House panel Wednesday) could clarify the outlook.
The Federal Reserve's policy making committee next meets in March. However, the council adopts open-policies to cope with the economic consequences while observing the new fiscal policy of U.S. President Donald Trump that aims at accelerating economic growth to 4% from 2% in the current time.
"What I don't think we've priced in is the offset of what happens with interest rates", he continued.
Traders also have to deal with an overbought market in terms of price and time, not any oscillators.