Well now it is out.Janet Yellen says nothing different from what was said in the last policy meet. It is business as usual and she emphasised the fact everything stays the course and she was the part of the decision making team which made the earlier policies so she has nothing to say which is different.
However one piece of information is this statement saying that volatility in global markets was not causing the Fed to rethink its policy stance.
“Our sense is that at this stage these developments do not pose a substantial risk to the U.S. economic outlook,” Yellen said.
she also did not address or give much comment about the last two job report.She said the Fed expects the economy and employment will expand at a “moderate pace” in 2014 and that inflation will move back toward the Fed’s 2% target.
She downplayed the importance of the unemployment rate as a gauge of the health of the labor market. That rate has fallen steadily and is now at 6.6%.Yellen said that workers out of a job for more than six months continue to make up an “unusually large” fraction of the unemployed and that many people working part time would prefer full-time jobs.“These observations underscore the importance of considering more than the unemployment rate when evaluating the conditions of the U.S. labor market,” Yellen said.
Many economists expect the Fed to move away from using the unemployment rate as a threshold for rate hikes at coming meetings.
Yellen also stressed that the Fed’s work to make the U.S. financial system more robust “has not yet been completed.”
She said the central bank was examining possible ways to address financial stability risks associated with short-term wholesale funding.
“We will continue to monitor for emerging risks, including watching carefully to see if the regulatory reforms work as intended,” Yellen said.
Markets confused or will react how? Now we need to see the market after it opens. The futures are trimmed and European markets are going down slowly waiting for US to react.