Interest rates

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Last quote about Interest rates

George Goncalves
We're shifting the focus away from the monetary policy side of things to fiscal policy. Though Yellen will be important, it most likely will be more about any kind of good news on getting details on tax reform.feedback
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Sep 22 2017
The latest person who has talked about Interest rates is Janet L. Yellen: “We put in place since the financial crisis, a set of core reforms that have strengthened the financial system. And in my personal view, it's important they remain in place. And those core reforms are: more capital, higher quality capital, more liquidity, especially in systemically important banking institutions. Stress testing and resolution plans, and those four prongs of improvements in banking supervision have really strengthened the financial system.”. You’ll find on this page all the other quotes of Janet L. Yellen and all the other people that have spoken about Interest rates. You can select these people and their quotes by date, by name, and you can easily have access to the articles from which they originated.
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All quotes about Interest rates

Janet L. Yellen - Federal Reserve System

We understand pretty well what the effects are on the economy. Market participants understand how that tool is used, and it would likely be adjusted in response to shocks to the economy. That's our go-to tool. That is what we intend to use.feedback

Kully Samra - The Charles Schwab

The Fed's announcement today to start unwinding the balance sheet has already been priced in by markets, but we continue to believe the Fed's 'quantitative tightening' could be the cause of some heightened volatility, especially as the impact on the real economy remains largely unknown.feedback

Janet L. Yellen - Federal Reserve System

We take our supervision responsibilities of the company very seriously, and we are attempting to understand what the root causes of those problems are and to address them. I'm not able to discuss confidential supervisory information and not yet able to tell you, but we're committed to taking the actions we regard as necessary and appropriate to make sure the right set of controls are in place in that organization. We're working very hard on it.feedback

Jason Pride

The most important thing Yellen needed to communicate to the market was that the bond sale plan and rate increases are not on autopilot.feedback

Elizabeth Warren

Janet Yellen is somebody who's gotten out there, she's talked about the importance of an economy that works well, not just for those at the top but for the rest of America.feedback

Ron Sanchez

The trend in inflation has taken a downtick. I think she [Ms. Yellen] will need a little more evidence on the inflation side over the next month or two to have some conviction about moving rates in December.feedback

Justin Lederer - Cantor Fitzgerald

You're basically at 50/50. The Fed I think is itching to get one more rate hike in this year, but the market has been discounting it. We'll see next Wednesday what [Fed Chair Janet] Yellen and the statement have to say about it, and there's also tomorrow's retail sales which is a big number as well.feedback

Victor Jones - TD Ameritrade

I don't think the market was expecting that kind of a strength in terms of inflation. What people want is know is whether or not Yellen is going to talk about the lack of inflation as transitory, or whether it is continuing to concern them. The tone coming out of September meeting will help drive the expectations into December.feedback

Steven Mnuchin

I'm working closely with the president on the issue. He hasn't made any decisions and that's one of the things he's still considering. There's a lot of good people.feedback

Steven Mnuchin

I obviously will respect the confidentiality of the process and not make any comments on any specific people that the president is considering. There's a lot of good people. The chair is obviously quite talented, and she's being considered, but there's a lot of great people that we've been meeting with and considering as well.feedback

Quincy Krosby - Prudential Financial

He bridges the world of a central banker but also having the market experience, which is a strong combination. Perhaps the thinking will be that someone who has Wall Street experience understands markets. The president is going to choose someone both with experience in the market and understanding of the markets. We don't know if [Yellen] wants it. She's been very discrete and many are saying that Jackson Hole could have been her swan song.feedback

Quincy Krosby - Prudential Financial

There's an expression that always haunts us: When rates rise, something always breaks. Janet Yellen has been trying very hard to transition to normal monetary policy, to make sure something doesn't break. ... The question then becomes, does someone who comes in understand that and know the history of the Fed's experience in raising rates?feedback

Christopher Whalen

People who thought we were going to keep the same cast of characters around, I hope they realize now that's not the case. There's going to be a significant change. It will be far less interventionist, far less prone to experiment.feedback

Greg Valliere

Monetary policy is going to be data dependent. If that's true perhaps the more intriguing angle is regulatory policy. That may guide his thinking on the next chairman.feedback

Seth Carpenter - UBS

The nomination and confirmation process can be quite slow. Given the full slate of issues that the Congress has to confront (the debt limit, the budget, tax reform, inter alia) the Senate will be hard pressed to complete more than one confirmation process.feedback

Greg Valliere

She's 71, and she's got a choice of maybe slowing down her pace and writing a book, or presiding over the winding down of the balance sheet with a big group of Trump appointees at the Fed. She may choose the former rather than the latter.feedback

Paul Ashworth - Capital Economics

Yellen and Fischer are viewed as being close and appear to share very similar views on both the monetary policy outlook and regulatory issues. Trump is keen to roll back much of the regulation put in place after the financial crisis, whereas Yellen and Fischer are staunch defenders of that regulation, arguing that it did not have an adverse impact on the economy or credit availability, but did make the financial system more safe.feedback

Stanley Fischer - Federal Reserve System

It has been a great privilege to serve on the Federal Reserve Board and, most especially, to work alongside Chair Yellen, as well as many other dedicated and talented men and women throughout the Federal Reserve System. During my time on the Board, the economy has continued to strengthen, providing millions of additional jobs for working Americans.feedback

Howard Archer - IHS

While consumer credit growth is still too strong for the Bank of England's liking, July's slowdown further dilutes the case for an interest rate hike any time soon. With the economy struggling and inflation looking close to peaking, we very much doubt that there will be any interest rate hike before late 2018 – and it could well be delayed until 2019.feedback

Zane Brown

Although the Fed's initial pace of balance-sheet slimming seems very manageable, the prospect of persistent increases in the rate of reduction could at some point produce investor concern. Regardless of investor reaction, the normalization of the Fed's balance sheet seems likely to be 'noisier' than the uneventful outcome suggested by Fed officials, and potentially a much different experience than the 'like watching paint dry' comparison offered by Chairwoman Yellen.feedback

Greg Valliere

The president demands unwavering loyalty [just ask [former FBI director] Jim Comey], and he never forgets a slight. Yet Trump got a smackdown this weekend from Gary Cohn and Janet Yellen. Yellen's prospects have slipped even further, after her full-throated defense of tough Wall Street regulations and free trade deals.feedback

Kathy Lien - BK Asset Management

In general, what you're seeing is a consistent tone of dollar weakness. The disappointment from (U.S. Federal Reserve Chair Janet) Yellen at Jackson Hole on Friday has carried over to trading this week.feedback

Imre Speizer - Westpac Group

Markets (were) disappointed with the Yellen speech and they sold the dollar and pushed bond yields down.feedback

Axel Merk

If you believe that traders were positioned for Draghi to talk down the euro, then they have to cover their positions.feedback

Nina Pavcnik

The backlash against globalization does not arise because people doubt trade's overall benefits. The backlash reflects that trade makes some individuals worse off.feedback

Apryl Evelyn Lewis

I don't agree with the Fed's recent decisions to raise rates. But Yellen's record over the years shows that, overall, she cares about people like me.feedback

Mario Draghi - European Central Bank

People are concerned whether openness is fair, whether it's safe and whether it's equitable. There is never a good time for having lax regulation.feedback

Alan Blinder

We economists think that David Ricardo got it mostly right 200 years ago, and a lot of people think he got it badly wrong, and we haven't convinced them in 200 years.feedback

Janet L. Yellen - Federal Reserve System

Evidence shows that reforms since the crisis have made the financial system substantially safer. While material adverse effects of capital regulation on board measures of lending are not readily apparent, credit may be less available to some borrowers, especially homebuyers with less-than-perfect credit histories and, perhaps, some businesses.feedback

Donald J. Trump

I have so many people, friends of mine, that had nice businesses. They can't borrow money. They just can't get any money because the banks just won't let them borrow it because of the rules and regulations in Dodd-Frank. I think she's very political and to a certain extent, she should be ashamed of herself.feedback

Paul Christopher

If you hear Janet Yellen say something like, Well, gee, we really don't think that lending has grown excessively,' that's a good sign for the markets.feedback

Art Cashin

It looks like Jackson Hole might turn out to be a duller-than-expected event. Now (Yellen) could always surprise us but I think she wants to be very careful about not disturbing the market.feedback

Janet L. Yellen - Federal Reserve System

Our more resilient financial system is better prepared to absorb, rather than amplify, adverse shocks, as has been illustrated during periods of market turbulence in recent years. Enhanced resilience supports the ability of banks and other financial institutions to lend, thereby supporting economic growth through good times and bad.feedback

Shin Kadota - Barclays

Surprises from Jackson Hole, if any, would probably come from Yellen rather than Draghi, and any impact on the euro would come from moves in the dollar. Market expectations for a December Fed rate hike have sunk quite low and there is room for improvement.feedback

Roberto Perli - Cornerstone Macro

When central bankers avoid a certain topic, it's often because they are comfortable with what markets are expecting.feedback

Mario Draghi - European Central Bank

On one hand we are confident that as the output gap closes inflation will continue converging to its objective over the medium term. On the other hand, we have to be very patient because the labour market factors and the low productivity are not factors that are going to disappear anytime soon. We have not seen yet the self-sustained convergence of inflation to the medium-term objective. Therefore a significant degree of monetary accommodation is still warranted.feedback

Paul Ashworth - Capital Economics

Fed Chair Janet Yellen's passionate defence of the post-crisis tightening of financial regulation isn't going to go down particularly well at the White House. Donald Trump has made rolling back regulation the centre-piece of his presidency.feedback

Marc Chandler - Brown Brothers Harriman

She didn't say anything that the market wanted to know about Fed policy. It's seen the 10-year yield slip and has seen the dollar weaken. It was not that she said anything bullish for foreign currencies; it was that she didn't say anything positive for the U.S.feedback

Chris Low

People had hoped for some excitement. The bond market is rallying with at least some people thinking (Yellen) would make the case for more rate hikes to take some steam out of the stock market.feedback

Mark Haefele - UBS Wealth Management

Our current assessment of the overall risk and reward picture keeps us overweight global equities in our tactical asset allocation. Earnings and economic growth are strong enough, and central bank policy is still sufficiently loose to suggest that, in the absence of a shock, markets are likely to trend higher over the next six months.feedback

Kathy Lien - BK Asset Management

Due to the uncertainty in the global markets and recent sell-off in U.S. stocks, there's no better reason than the now for Yellen and Draghi to stick to script.feedback

Mark Cabana - Bank of America Merrill Lynch

I think [Yellen could] come out and suggest she sees increased risks to financial stability from easy financial conditions, similar to how some of the staff, at least at the last FOMC meeting, had noted valuation pressures have moved from notable to elevated.feedback

Shawn Sebastian - Federal Reserve System

We have been critical of Janet Yellen. Considering the other people under consideration, there's just no question.feedback

Michael Arone - State Street Global Advisors

I don't think she's going to use (Friday's) speech as her legacy, but I do think she and the Fed are concerned with what happens after they leave. [Alan] Greenspan was the 'maestro' until it fell apart, [Ben] Bernanke was credited with saving the markets but then criticized for keeping policy too easy. I think Yellen is very concerned with post-tenure bubbles popping and what will happen. Will she be a scapegoat for that?feedback

Paul Sheard - S&P Global

Financial stability is really important. If you have a financial crisis and you have financial instability, you really throw the economy into a lot of turmoil and you can't be achieving your objectives. One of her great achievements over the course of her four-year tenure was to communicate how the Fed would go about starting to unwind its balance sheet, to lay out the principles and start the process. When historians look back, that will be seen as a major achievement of her chairmanship.feedback

Esther George - Federal Reserve Bank Of Kansas City

I think we should continue with the gradual rate path. While we haven't hit 2 percent, I'm reminded that 2 percent is a target over the long term, and in the context of a growing economy, of jobs being added, I don't think it's an issue that we should be particularly concerned about unless we see something change.feedback

Gene Sperling

The Bernanke and Yellen Fed do deserve praise for very expansive and creative monetary policy and that there has been real policy since 2010. We should also equally recognize it doesn't mean things are good enough.feedback

Jeremy Klein - FBN Securities

Central bankers will begin gathering on Thursday night in one of the most highly anticipated Jackson Hole symposiums in recent memory. However, most analysts do not expect [Fed Chair] Janet Yellen or Mario Draghi to break any new ground with monetary policy when speaking at the conference. Shares should therefore regain their footing as we close out August and head into September albeit neither the Fed nor the ECB has enough sugar in the cupboard to make the medicine each will soon administer go down easily.feedback

Jordan Rochester

If Yellen makes this point in her Jackson Hole speech, that reinforces the likelihood that the FOMC [Federal Open Market Committee] will raise rates again at their meeting in December.feedback

James Knightley

Markets expect one rise in interest rates over the next 18 months but the Fed says it expects four rises, so it could become a nasty environment.feedback

Ian Shepherdson - Pantheon Macroeconomics

Clearly this is a prime opportunity for Ms Yellen to tell markets that the Fed expects to keep raising rates, despite the recent run of soft core consumer price inflation numbers, because the labour market cannot be allowed to tighten much further.feedback

Hiroko Iwaki - Mizuho Securities

People focus on inflation but in the Fed's minutes policy makers spend a lot of time discussing whether bond yields are too low or asset prices are too high. If Yellen questions market stability, markets will expect a tighter policy.feedback

Marc Chandler - Brown Brothers Harriman

I think Jackson Hole is going to be disappointing. Draghi is not going to say anything. Neither is Yellen.feedback

Greg Valliere

Cohn's probably the front-runner to replace Janet Yellen, so I can't see him voluntarily giving up an opportunity like that. I don't see him getting fired. I think he's held in high regard. It was clear to me and I think a lot of people on Tuesday that he was distressed by Trump's doubling down on the Charlottesville stuff, but I don't think it's sufficient for him to quit. I think like everyone at the White House, he's distressed about what Trump has done.feedback

Robert J. Samuelson

How the Fed manages to gradually shrink its bond holdings will shape the economy — and her legacy.feedback

Luke Hickmore - Aberdeen Asset Management

This is a clear signal that the Fed will start unwinding its gargantuan balance sheet in September. It also leaves the door open for one last rate hike in December. You get the sense that [Fed Chair Janet] Yellen would like to raise rates again this year. But inflation just doesn't support it at the moment. So the Fed needs to make a call on whether to put less stock in inflation or not.feedback

Jeremy J. Siegel

I was pleased with Trump's comments about Janet Yellen. I think she's done a good job ... I think that's a good team. I think that's a good team for the Trump administration. The fact that he has actively said he is considering her, I mean I think that should be very, very positive the markets.feedback

Mike van Dulken - Accendo Markets

It may provide some clarity on the outlook for further rate hikes in light of recent poor inflation data, and investors are eager to know more about the timing of its balance sheet unwind, however, Yellen may again only offer crumbs with which we can ponder for the rest of the summer.feedback

Peter Ireland

If you see inflation running below target persistently, for so long, it's really hard to get around the idea that, despite everything, monetary policy has actually not delivered sufficient accommodation. It's a reason not to clamor for additional rate hikes on top of what we've already seen.feedback

Janet L. Yellen - Federal Reserve System

It's premature to reach the judgment that we're not on the path to 2 percent inflation over the next couple of years. We're watching this very closely and stand ready to adjust our policy if it appears the inflation undershoot will be persistent.feedback

Bill Gross

The adherence of Yellen, Bernanke, Draghi, and Kuroda, among others, to standard historical models such as the Taylor Rule and the Phillips curve has distorted capitalism as we once knew it, with unknown consequences lurking in the shadows of future years.feedback

Joel Kan

Treasury yields were slightly lower last week as testimony from [Fed Chair Janet] Yellen was perceived to be more dovish than expected, and as the market received data signaling weaker inflation and retail sales for June. These factors kept the 30-year fixed-contract rate flat over the week.feedback

Janet L. Yellen - Federal Reserve System

I believe we have done a great deal since the financial crisis to strengthen the financial system and to make it more resilient. Some of them, yes.feedback

Robert Sinche - Amherst

I think it will be a delayed process. We need inflation more than anything else. The employment numbers don't matter, growth numbers don't matter. All that matters is inflation.feedback

Ward McCarthy - Jefferies

I think this has caused some consternation not just with Janet Yellen but with other people at the Fed, as well. It does look like it's going to slow down the normalization process.feedback

Viraj Patel

It is broadly a U.S. dollar-negative market as latest comments from Yellen and others suggest that interest rates will rise very gently and that is supportive for high-yielding currencies for now.feedback

Paul Fage - TD Securities

Global risk appetite has been good, most major stock markets are up over the week ... thanks to a mixture of Yellen and OK growth but not threatening growth.feedback

Janet L. Yellen - Federal Reserve System

We need to conduct a thorough investigation to look at the full record ... We are certainly prepared to take enforcement actions.feedback

Sherrod Brown

Lobbyists are using the success of these reforms as proof that they should now be gutted. I'm sure that every college student you taught in your long, distinguished academic career who struggled in class would have wanted the same thing. But they, unlike our nation's largest banks, would have been too embarrassed to ask their professor.feedback

Janet L. Yellen - Federal Reserve System

It is challenging to move productivity growth up that much, but I hope that Congress and the administration will focus on changes that will succeed in accomplishing that.feedback

Elizabeth Warren

How could removal of these board members not be warranted given the facts that we already know? Can you explain to me how the Wells board can possibly have satisfied its obligations under the Fed's risk management regulations?feedback

Janet L. Yellen - Federal Reserve System

Of course, considerable uncertainty always attends the economic outlook. There is, for example, uncertainty about when – and how much – inflation will respond to tightening resource utilization. Possible changes in fiscal and other government policies here in the United States represent another source of uncertainty.feedback

Janet L. Yellen - Federal Reserve System

The behavior that we saw was egregious and unacceptable and it is our job to understand what the root causes are of those failures. We are certainly prepared to take enforcement actions if those are appropriate. I haven't really decided that issue.feedback

Art Cashin

Finding a health-care bill that was not dead on arrival gave them the feeling not so much about health care but that maybe tax reform might have some life if these guys can get close to agreeing on health care.feedback

John Manley

She's aware of the inflation risks, she's aware of the deflation risk, she's aware of the asset bubble risk.feedback

Art Cashin

We started out with a bounce in the morning hoping that Yellen would bring another box of candy to the game. When she failed to do that, the market pulled back.feedback

Kathy Lien - BK Asset Management

Yellen gave some hope to the dollar bulls with her acknowledgement of the improvements in the economy, but at the end of the day investors are still skeptical of what data is going to be like. That's why you have not seen much in the way of additional follow through in dollar demand.feedback

Janet L. Yellen - Federal Reserve System

There are shocks that impact the economy, and a negative shock could end the expansion. But I don't see anything inherent in the nature of the expansion that suggests it will come to an end anytime soon.feedback

Elizabeth Warren

If bank directors that preside over the firing of thousands of employees for creating millions of fake accounts can keep their jobs, then I think every bank director in this country knows that they are bulletproof. You have the power to change the culture on Wall Street. I know you care about this issue. I hope you will use that power.feedback

Janet L. Yellen - Federal Reserve System

In the last five years, productivity growth has averaged a half percent. The last decade, something like 1.1 percent.feedback

Janet L. Yellen - Federal Reserve System

I will say that the behavior that we saw was egregious and unacceptable. We do have the power if it proves appropriate to remove directors. A number of actions already have been taken. We need to conduct a thorough investigation to look at the full record to understand the root causes of the problems. We are certainly prepared to take enforcement actions if those prove to be appropriate.feedback

Janet L. Yellen - Federal Reserve System

Spending on health care is an important aspect of household budgets, and changes there could have an affect on spending on a wide range of goods and services in the economy. And access to health care is important.feedback

Elizabeth Warren

Here's what worries me. Time after time, big banks cheat their customers, and no actual human beings are held accountable. Instead there's a fine, which is ultimately paid for by shareholders, not by executives and certainly not by directors of the board.feedback

Janet L. Yellen - Federal Reserve System

Ongoing job gains should continue to support the growth of incomes and, therefore, consumer spending; global economic growth should support further gains in US exports; and favorable financial conditions, coupled with the prospect of continued gains in domestic and foreign spending and the ongoing recovery in drilling activity, should continue to support business investment. These developments should increase resource utilisation somewhat further, thereby fostering a stronger pace of wage and price increases.feedback

Janet L. Yellen - Federal Reserve System

Monetary policy is not on a pre-set course. We're watching it very closely and stand ready to adjust our policy if it appears that the inflation under-shoot will be persistent.feedback

Bas Van Geffen - Rabobank

It mostly seems to be down to Yellen, . The fact that it seems like the Fed is going to take it slowly is being seen as a good sign by the equity markets and by the currency markets.feedback

Jared Bernstein

A study from the Federal Reserve underscores the importance of full employment for minority workers.feedback

Ethan Harris - Bank of America Merrill Lynch

The story here is we've had this big slowdown in the auto industry, which I think is legitimate. The auto industry has been driving sales aggressively with subprime lending and leasing agreements. They've pulled sales forward. I think the sector is peaking. It's the only major cyclical part of the economy that's cooled off. I don't think it's a sign of a broader weakening in the economy. I think it's specific to autos.feedback

Art Cashin

It's going to be important with the Fed sitting on their hands. How are the banks doing, without help from the yield curve?feedback

Art Cashin

People are discussing it. That gave people hope. The mere fact it wasn't dead on arrival gave some people hope for tax reform.feedback

Michael Crapo

I regularly hear from Idaho businessmen and women who are concerned about access to loans that would create jobs and build a healthy economy.feedback

Bart Wakabayashi - State Street

The overall assessment is that Yellen sounded dovish, but perhaps this was a result of her attempt to assuage too many concerns at once. Our data suggests that U.S. inflation is actually picking up again. The Fed appears to still be in a position to continue hiking rates.feedback

Mike van Dulken - Accendo Markets

Calls for a flat open are at odds with a positive US close and follow a mixed session in Asia overnight. While a less hawkish testimony from Fed Chair Yellen gave markets a boost yesterday, by inspiring hope of cheaper money for longer, USD weakness since has offered mixed blessings. FX hindrance could thus dent the FTSE today as GBP/USD extends its rebound to $1.29, weighing on London-listed stocks with an international reliance. However, remember also that a weaker USD also represents a benefit for the key commodity space, namely oil and miners.feedback

Yoshihiro Okumura

When market's volatility is low, investors look to small-to-mid cap stocks after giving up chasing large cap stocks higher.feedback

Kathy Lien - BK Asset Management

Investors have been skeptical of the Fed's hawkishness in the days leading up to Janet Yellen's testimony and when she failed to sufficiently emphasize the improvements in the economy, the dollar U-turned as the bulls abandoned their trades quickly.feedback

Janet L. Yellen - Federal Reserve System

Because the neutral rate is currently quite low by historical standards, the federal funds rate would not have to rise all that much further to get to a neutral policy stance. Because we also anticipate that the factors that are currently holding down the neutral rate will diminish somewhat over time, additional gradual rate hikes are likely to be appropriate over the next few years to sustain the economic expansion and return inflation to our 2 percent goal.feedback

Keith Bliss - Cuttone & Company

I think what Chair Yellen said today was basically the Goldilocks testimony where she gave salve to maybe anybody who's thinking the economy is not tracking well or that they were going to raise rates quicker than they've said or they were suddenly going to unleash all the bonds onto the bonds on the market.feedback

Peter Boockvar - The Lindsey Group

The Goldilocks interpretation of today's Fed statement I think was a bit overdone. I don't know what the market interpreted as new. She said nothing new. It just shows you that the market is still obsessed with an easy Fed. As much as it has shrugged off the rate hike at the end of the year, they still like an an easy Fed. But she is still tightening the balance sheet. I think it's a much bigger deal.feedback

Peter Boockvar - The Lindsey Group

CPI core was above 2 percent for like 15 months in a row and the irony is the Fed never tightened through that. I think food prices all of a sudden could replace energy prices as an influence on headline inflation.feedback

Jack Ablin

The consensus is the Fed is wrong, and maybe the Fed is right this time. I think they're viewing the balance sheet reduction and rate hike as the same effect.feedback

John Briggs - NatWest

She took a very small step acknowledging it might not just be transitory factors. They're watching it carefully.feedback

Jack Ablin

This isn't a meteor coming from outer space. This is a self-contrived thing. I'm worried that a lot of the gains in growth can be directly attributed to the trillions of dollars the central banks printed and funneled into the market, but at the same time I don't think it's a foregone conclusion they're going to close up shop and sell everything.feedback

Jim Vogel

People are going to be very anxious if that was just a statistical glitch ... or if it is going to continue.feedback

Janet L. Yellen - Federal Reserve System

To my mind, a prudent course is to make some adjustments as long as our forecast is that we're heading back to 2pc.feedback

Janet L. Yellen - Federal Reserve System

What I previously said is that I absolutely intend to serve out my term.feedback

Elon Musk - Tesla Motors

Over time I think we will probably see a closer merger of biological intelligence and digital intelligence.feedback

Janet L. Yellen - Federal Reserve System

Wages and jobs of middle class families that have seen diminishing opportunities and downward pressure on middle class wages, we have to take effect of the technological change that have eliminated middle income jobs and globalization that has reinforced the impact of tech.feedback

Janet L. Yellen - Federal Reserve System

For many years, many American companies have been sitting on a lot of cash and have been unwilling to undertake investment in the scale we would ideally like to see.feedback

Jim Iurio - TJM Institutional Services

After months of talking tough on rates it appears that Janet Yellen has changed her tune. My belief is that the original hawkishness was contingent on a belief that pro growth policy changes were right around the corner. However, this takes away one of stock markets primary worries, that the Fed would raise rates before the political landscape could be sorted out. In other words, this is a long way of saying the Fed's got your back.feedback

Quincy Krosby - Prudential Financial

There seems to be a resurgence of the tug-of-war within the Fed regarding the rates trajectory. At here [June] press conference, she indicated that the bar to keep rates lower for longer was higher. Now it seems like that may change.feedback

Mark Grant - Hilltop

We are not in a normal world. We have the central banks in all over the world – Japan, ECB, even our own Fed – with the $4.5 trillion balance sheet. There is no normalcy. This is not normal, and I don't know why the Fed is talking about it.feedback

Christine Lagarde - International Monetary Fund

There may, one day, be another crisis. I plan on having a long life and I hope she (Yellen) does, too, so I wouldn't absolutely bet on that because there are cycles that we have seen over the past decade and I wouldn't exclude that. Where it will come from, what form it takes, how international and broad-based it will be is to be seen, and typically the crisis never comes from where we expect it.feedback

Hirokazu Kabeya - Daiwa Securities Group

Yellen's testimony is the biggest focus. I don't expect shares to move much in either direction ahead of that.feedback

Hiroko Iwaki - Mizuho Securities

The e-mails look pretty bad but then again they don't look like decisive evidence (for illegal behaviour) either. I doubt this alone would lead to a risk-off market. I would think Brainard was in a way speaking for Yellen. It seems like the Fed is becoming cautious about rate hikes.feedback

Jim Vogel

Yellen's congressional remarks reminded traders that inflation's path higher remains an uncertainty in the Fed's rate policy.feedback

Janet L. Yellen - Federal Reserve System

A strengthening in economic growth abroad has provided important support for U.S. manufacturing production and exports.feedback

Janet L. Yellen - Federal Reserve System

Such prescriptions cannot be applied in a mechanical way. Their use requires careful judgments.feedback

Tomoaki Shishido - Nomura Securities

Yellen has indicated after the June policy meeting, in the clearest way as possible by her standards, that she plans to start balance sheet reduction and there will be one more rate hike this year. Since then, there's been no big changes in the economy. I would think the U.S. CPI data on Friday could be more important. If the Fed's assessment that the softness in CPI between February and May is transitory, the Fed will go ahead with its plan. If that's not the case, some Fed policymakers will want to revise that plan.feedback

Ethan Harris - Bank of America Merrill Lynch

It's no pain, no problem. My personal view is that will be challenged down the road. Right now the markets have gotten used to the idea the Fed doesn't follow through...I think the market in a sense is saying it's not sure anything is going on here...I think there's going to be some meeting in the middle, where the markets, the bond market in particular, starts to feel a little bit of pain, some of which we've seen in the last week or so as yields began to rise.feedback

Thomas Simons - Jefferies

You look at the futures market and the probability [of a rate hike this year] is low. It's 12 percent for September and December is 54 percent.feedback

Thomas Simons - Jefferies

You don't get a full pricing in of a rate hike until May, 2018. People would say there is not one priced in until June. I think Yellen is going to try to disabuse us of this notion tomorrow. If she repeats what she said [after the June meeting], you can throw away all the dovish talk we heard.feedback

Ethan Harris - Bank of America Merrill Lynch

There's no reason for her to change her tune. They laid out the story pretty clearly. Their view, and I think it was confirmed by the jobs number is: 'We have a strong jobs recovery going on. We're either at full employment or we're likely to be at full employment shortly. The job market shows no signs of slowing down. Even if core inflation readings look a little weak for a couple of months, ultimately that will change.' I think that's the basic message. The labor market trumps the inflation picture.feedback

Masafumi Yamamoto - Mizuho Securities

Normalisation of monetary policy in the coming months is almost priced in, and the Fed will start shrinking its balance sheet in September, and this does not necessarily mean a delay of rate hikes, . This is supporting the dollar as a positive factor, and limiting its downside at the moment. I think Yellen will confirm that rate hikes are coming, and that balance sheet shrinkage will come.feedback

Tim Brown

If the (Yellen) commentary is a little more hawkish, it's going to put a little more pressure on gold again and going by previous FOMC minutes, it's probably going to be. A lot of it has already been priced in.feedback

Koji Fukaya - FPG Securities

The main focus is whether Yellen makes it clear in Congress that the Fed intends to begin winding down quantitative easing. Once the intent is shown in front of Congress, the next step would be to actually follow through with it.feedback

Jeremy Klein - FBN Securities

The economic calendar goes dark until later this week. Although Janet Yellen will march up the steps of Capitol Hill on Wednesday, the Chairman will likely not add any new pieces to the current monetary policy puzzle. Hence, portfolio managers have started to shift their focus to the upcoming earnings season.feedback

Jim Cramer

This is nirvana for banks. This rate rise makes it ... so easy for Janet Yellen. It makes it so JPMorgan, you got to go to a $100 price target. ... It's going to have a remarkable quarter.feedback

Ward McCarthy - Jefferies

The Fed has made it very clear their focus is not that narrow. Yes, the Fed would like to see wage growth accelerate…the average hourly earnings is not going to change their view on inflation. [Janet] Yellen and Bill Dudley and the minutes made it clear they have dismissed the transitory factors that are subduing inflation.feedback

Jim Cramer

I think the economy is OK. I think that inflation is lower than they want. They definitely want to get off the emergency. I think that the Fed is kind of – it's in a unique place. It can take a lot of action and not hurt the stock market. It can move and people will continue to buy the banks.feedback

Jim Cramer

That rotation out of tech, I think it had much more to do with a markup that existed until the week before of a serious markup of everything internet of things, everything video games, everything of artificial intelligence and not social media and not web services.feedback

Janet L. Yellen - Federal Reserve System

We're not targeting financial conditions. We're trying to generate paths for employment and inflation that meet our mandated objectives.feedback

Howard Archer - IHS

It may be that the heightened squeeze on consumer purchasing power is increasing the need for some consumers to borrow. The Bank of England will be far from happy with the May consumer credit data, and it could bolster the case for a near-term interest rate hike to try to curb consumers' readiness to borrow.feedback

Janet L. Yellen - Federal Reserve System

We think it will be appropriate for the attainment of our goals to raise interest rates very gradually to levels that are likely to remain quite low, although there is uncertainty about this, to remain low by historical standards for a long time.feedback

Simon Quijano-Evans - Commerzbank

It's a combination of Draghi and the Yellen comments – Draghi pushing up U.S. Treasury yields and Mrs Yellen highlighting stretched risky asset prices.feedback

Patrick Harker - Federal Reserve Bank

I still see another rate hike as appropriate for 2017, having already implemented two this year.feedback

Janet L. Yellen - Federal Reserve System

I would say that I've got a good working relationship [with Mnuchin]. I've found solid respect for the independence of the Fed.feedback

Howard Archer - IHS

The risk to financial stability coming from the recent rapid growth in consumer credit would undoubtedly be magnified if there is a near-term interest rate hike. While any interest rate hike would be small with further increases some way off, even small increases could cause problems for some consumers given their high borrowing levels.feedback

Kaneo Ogino

Hedge funds are already selling yen this week, and positive comments from Yellen could give them an excuse to sell even more.feedback

Masashi Murata - Brown Brothers Harriman

Even after the break of the 112 level, the dollar didn't show any strong upward momentum.feedback

Stephen Gallo - BMO Capital Markets

The market continues to call the Fed's bluff on its intentions to change rates. I don't think anything (Fed chair) Janet Yellen can say this week will change that. We were saying buy dips in cable and euro (against the dollar) last week. We still look for the same this week.feedback

Thierry Albert Wizman

We'll know more from Yellen tomorrow. Traders are still split on what the Fed is going to do.feedback

Jeremy Stretch - CIBC World Markets

I think that the burden of proof for the dollar (to appreciate) is pretty high. Even if there isn't going to be any outright criticism of Yellen, if you don't think U.S. (10-year government bond) yields are going to be above 2.20 per cent then it is tough to buy into it.feedback

Janet L. Yellen - Federal Reserve System

We want to keep the expansion on a sustainable path and avoid the risk that ... we find ourselves in a situation where we've done nothing, and then need to raise the funds rate so rapidly that we risk a recession. But we are attentive to the fact that inflation is running below our 2 percent objective.feedback

Josh Bivens - Economic Policy Institute

Today's decision seems to indicate that the Fed is on autopilot to raise rates, regardless of what the data argue. This will lead quite soon to a pronounced slowdown in economic activity and job growth, and could essentially mean that we never manage to achieve genuine full employment or give American workers a real chance at sustained, durable wage growth.feedback

Janet L. Yellen - Federal Reserve System

Our decision reflects the progress the economy has made and is expected to make.feedback

Janet L. Yellen - Federal Reserve System

It's important not to overreact to a few readings, and data on inflation can be noisy. We continue to feel that with a strong labour market and with a labour market that's continuing to strengthen, the conditions are in place for inflation to move up.feedback

Jim Cramer

Instead, while you may have heard that [Yellen] could cool the housing market with this hike, ... then why did the housing stocks rally, with many of them hitting their highest levels since 2007, before the Great Recession? Why did Home Depot, the most housing-sensitive retail stock, soar? Because, at least for now, this rate hike a non-event.feedback

Jim Cramer

The S&P and Dow hit an all-time high yesterday, and the Dow hit another one today. That seems like a pretty good argument for why we should've been down big on today's rate hike, especially given how weak consumer spending has been and how tepid the overall growth rate is. But she's judged it correctly: a non-event that produced a little buying and a little selling is really an apt description of what happened in the wake of her actions.feedback

Jim Cramer

I didn't hear a soul come out today and mention how right Yellen's been and how wrong everyone else has been about factoring [in] the Trump effect. She's been right as rain about what was going to happen and she gets zero credit whatsoever for engineering this soft path out of the economic emergency room.feedback

Art Cashin

[Yellen] was [overly optimistic] based on the data today. I don't see them moving again this year, unless things improve dramatically.feedback

Ian Shepherdson - Pantheon Macroeconomics

One side has to blink, and given the Fed's 50-year obsession with the unemployment rate, it's unlikely to be Dr. Yellen.feedback

Greg McBride

As expected, the Federal Reserve followed through with an interest rate hike – the third in the past six months and fourth in the past 18 months. But this could be the last hike for a while. Until we see a reversal of the recent weakness in economic growth, retail sales and inflation, the Fed will be on the sidelines.feedback

Janet L. Yellen - Federal Reserve System

So what I've said about my own situation is I fully intend to serve out my term as chair, which ends in early February.feedback

Stephen Gallo - BMO Capital Markets

There was a stale short of the commodity bloc and the move in the CAD has dragged them higher. We'll still see rate hikes baked in for the future. But there is a risk that they will send some sort of dovish signal. A median dot comes down, something like that. If Yellen says something about balance sheet reduction, that would be dollar positive.feedback

Boris Schlossberg

The dollar will sell off very hard, bonds will be bought and equities will likely rally if there are no more rate hikes before 2017. The Fed chairwoman, Janet Yellen, has been arguing that inflation is going to accelerate into the second half of this year. Tomorrow's data is going to be key in telling us whether that's really going to be the case or whether it's going to stay very much moribund.feedback

Boris Schlossberg

The market is going to focus on the dot plot and what Chairwoman Janet Yellen says, whether she is going to be dovish or hawkish with respect to the rest of the year.feedback

Brad DeLong

When I write the history of the 2010s, I think both Ben Bernanke and Janet Yellen are going to be judged quite harshly.feedback

Matt Maley

Unless Comey drops a complete bomb shell … or crude oil begins to crash … the odds are pretty good that the stock markets will remain quiet until we hear from Janet Yellen next week.feedback

Shashank Shekhar - Arcus

Slow yet steady movements in last few weeks have now brought the mortgage rates to their lowest level of the year. There are several geopolitical news [events] in the coming week that could have a substantial impact on the rates. There is British election results, Comey testimony, European central bank policy decision and even a possible Fed interest rate hike. With such market-moving news in the mix, it is very difficult to predict mortgage rates, but I am leaning towards a slight decline.feedback

Kenneth J. Heinz

As a result, the thematic drivers of performance for H2 17 have shifted to include not only the Trump and Yellen trades, but also the Volatility reversal trade and the increased risk associated with Terrorism and Cybersecurity. Managers positioned tactically long and short which are able to navigate both rising and falling volatility market cycles are likely to lead industry performance in H2 17.feedback

Christopher Whalen

Clearly, these appointees are a significant departure from the crowd that we've had on the board. Yellen is probably the most left-wing Fed chair we've ever had. I also think both Quarles and Goodfriend have much better grounding in the financial markets. That would be refreshing.feedback

David Lamb

This is a broadly grim jobs report, but not quite grim enough to blow the Fed off course. The momentum - and expectation - for a June interest rate hike is sufficiently strong to ensure that (Fed Chair) Janet Yellen will still pull the trigger as expected on June 14th.feedback

Diane Swonk

I think there's still two rate hikes. What they want to do is set up a trajectory so there's a path to rate hikes and unwind the balance sheet in a measured and slow way before Chair Yellen leaves office.feedback

Zach Pandl - Goldman Sachs Group

The administration's currency views could affect the dollar through a variety of channels, including its appointments to the Federal Reserve Board and through aspects of trade and fiscal policy.feedback

Peter Schiff

Even [former Fed chairman] Alan Greenspan is forecasting stagflation, and he ought to know because he wrote the playbook that Ben Bernanke and Janet Yellen are following.feedback

Steve Moore

Look, what made Trump so attractive to so many of the Trump voters was this idea that… he wasn't just a standard politician who says one thing and does another thing, so he's got to be careful about that. It's the big promises that matter most. We, as conservatives, believe the Fed should basically have one mandate, and that is to keep the dollar stable and to keep inflation down. Janet Yellen has to go. The free-market conservatives -- I think they're universal in wanting to get rid of Yellen. I think people would be very disappointed.feedback

Jim Cramer

Right now, investors are confused about Trump. A man who ran on the idea that America comes first, that China hurt our country with its currency manipulation, that interest rates may be too low, that Fed chief Janet Yellen is toast, that NATO's no longer relevant and that the Export-Import bank is a boondoggle for big companies, suddenly repudiated every single one of those principles in a single 24-hour news cycle.feedback

Bill Gross

In terms of Yellen, I think it's interesting that he's reversed there as well. He likes Yellen now. He thinks that maybe he'll reappoint her. He's got three to five appointments going forward in terms of the Fed. You know, I would expect him to appoint dovish types of governors and presidents so expect a dovish Fed going forward and easy money policy as well.feedback

Vincent Reinhart - Standish Mellon Asset Management

It's always been the deep irony: the Federal Reserve Chair appointment that would most reliably deliver a low path for policy rates and be market friendly was Janet Yellen, and the president just admitted that. It is attractive to have been nominated by presidents of two different parties.feedback

David Wessel

I think they would realize that anyone else would have to raise rates faster and farther than Yellen to establish his or her anti-inflation backbone. You can see how it would be to their advantage to have a dovish Fed chair. On the other hand, the politics are pretty dicey. She's not very popular with Republicans, so it would take a lot of political capital to get her [confirmation] through the Senate.feedback

Joseph Gagnon

I don't see what is in his interests to appoint someone who is going to jack up interest rates.feedback

Carter Eskew

Now I know what it must be like for an alt-right devotee to have a bad acid trip. Seemingly overnight, the once solid nationalist credentials of Donald Trump have distorted into some Sgt. Pepper-like fantasy of globalism. His steadfast admiration for Russia’s strongman has kaleidoscoped into a marshmallow pie of affection for NATO. And those rotten, no-good currency manipulators in China are today as harmless as tangerine trees and marmalade skies. Even Janet Yellen, the head of the Federal Reserve - that bastion of globalist financiers - who once should have been “ashamed” of herself has now become a diamond in the sky, and the president says he may even reappoint her to another term.feedback

Donald J. Trump

Janet Yellen should have raised [interest] rates. She's not doing it because the Obama administration and the president doesn't want her to. After listening for 10 minutes, I realized it's not so easy. I felt pretty strongly that they had a tremendous power… but it's not what you would think.feedback

Diane Swonk

If any of his budgets are really realized, they're deficit-inducing and he wants to keep interest rates low. Any president that's wanted to keep interest rates low has ended up with a lot of inflation, like Truman, Johnson and Nixon. It's interesting. This also illustrates the gap between the administration and the House and Senate. The House and Senate have consistently wanted someone more hawkish at the Fed than Janet Yellen. It doesn't surprise me one bit.feedback

Diane Swonk

Without border adjustment, you're $2.3 trillion in the hole and that means you have to move to a higher corporate tax rate.feedback

Ward McCarthy - Jefferies

His position on Yellen has changed a lot since he was candidate Trump. Now that he's President Trump, a low interest rate policy is not so bad because he wants the economy to grow well. A big focus of President Trump's objectives is trade and consequently he just doesn't want a dollar that's too strong. It's going to hurt the U.S. trade position.feedback

Michael Feroli

Giving lip service to strong dollar policy had been accepted for 20 years or more. On interest-rate policy, I think it's tricky, because arguably the third mandate of the Fed is low long-term interest rates. So I don't think just being a low-interest rate person is a problem. I don't think this is per se a threat to Fed independence, but it's definitely a little bit different than what we've become used to.feedback

Greg McBride

As president, having a steady hand at the controls of monetary policy is better than switching jockeys midrace.feedback

Scott Clemons - Brown Brothers Harriman

The norm is for presidents to observe the importance of an independent central bank. The norm is for presidents to pay lip service to a stronger dollar, almost as if it's a point of national pride. But like so much else about his presidency, he says out loud what other holders of that office have been more circumspect about.feedback

Steve Moore

Trump is walking a policy tightrope. A president of course has to adapt to changing circumstances, but he also has to honor his central campaign promises. Janet Yellen and Obamacare have to go.feedback

Carl Tannenbaum - Northern Trust

Maybe he's learning on the job. It's not easy to find somebody who is going to have credibility in that job. The confirmation process is not an assured thing these days. And the markets weigh in if they were to nominate somebody who didn't share the Fed's view of itself as independent.feedback

Janet L. Yellen - Federal Reserve System

We think a gradual path of increases in short-term interest rates can get us to where we need to be, but we don't want to wait too long to have that happen.feedback

Richard Koo

When Trump came up with this infrastructure spending (plan), you notice that both Janet Yellen and Stanley Fischer came out and welcomed that as the real pillar supporting the U.S. economy.feedback

Jan Hatzius

I think it makes some sense. Personally I don't think it's really urgent for them to start reducing the balance sheet, but assuming that you want to do this at some point in the next year or two, I think it does make some sense to get started before the leadership transition at the Fed. There will likely be a new Fed chair after early 2018, when Janet Yellen's term comes to an end and having already established a bit of a baseline path for how the balance sheet is going to be adjusted probably makes sense at that point to reduce the uncertainty that you otherwise get in that period.feedback

Jim Caron - Morgan Stanley & Co. International

If they're talking about doing it this year, then Janet Yellen is saying under the Janet Yellen Fed, they are starting the balance sheet winddown. They are not kicking the can to the next person. That's kind of setting the course for the next Fed chairperson to handle it.feedback

Josh Feinman - Deutsche Asset Management

I think the operative word here is going to be gradual. They're not going to want to go cold turkey. They don't want to do anything disruptive. When the process is underway, the Fed doesn't like to shake the trees too much. That's another reason I think they would like to get this plan articulated, announced and on its way before Yellen leaves.feedback

Adam Posen - Bank of England

The Fed is going back to normal in the sense that it's not scared to do the moves that it would normally do in response to the forecast. You're nearing the end of this Fed regime and it's not just Chair (Janet) Yellen, Vice-Chair (Stanley) Fischer (who get a say), President Trump gets to appoint five members of the seven member Federal Reserve Board of Governors in the next 10 months and so you want to get this policy of tightening underway before that uncertainty kicks in.feedback

Janet L. Yellen - Federal Reserve System

Young adults who regularly or sometimes worried when they were children about care, safety or having enough to eat are also less likely to be employed, less likely to have consistent income month-to-month and less likely to pay all of their current monthly bills in full, compared with those who never or rarely worried about these concerns as children.feedback

Quincy Krosby - Prudential Financial

The market has embraced the Trump agenda through thick and thin. Anything that looks as if that may be delayed or watered-down or that he is not the great negotiator that he campaigned on has an extended, overbought market questioning whether or not valuations at this point are correct.feedback

Michael Arone - State Street Global Advisors

There's a real policy timing mismatch here. Yellen is moving the ball down the court, while Trump still has failed to put the ball in play.feedback

David Rosenberg - AeroFarms

My recommendation is to stop wasting your time trying to explain something that is as simple as an asset class that is priced for perfection at some points realizes that the world is not a perfect place. A president can certainly fly a drone whenever and wherever he wants, but he is never bigger than the business cycle and over time has little influence over investment returns as well.feedback

Michael Arone - State Street Global Advisors

The different perspectives of Chairwoman Yellen and President Trump further underscore the potential for a future collision, rather than productive collaboration.feedback

Quincy Krosby - Prudential Financial

We are so used to a market that has been underpinned by accommodative monetary policy. We have gotten away from what markets are supposed to do. They are supposed to recalibrate, take time, burn out froth and wait for the next catalyst to push the market higher.feedback

Janet L. Yellen - Federal Reserve System

This research underscores the value of starting young to develop basic work habits and skills. These habits and skills help prepare people for work, help them enter the labor market sooner, meet with more success over time and be in a position to develop the more specialized skills and obtain the academic credentials that are strongly correlated with higher and steadier earnings. Ensuring that all of our kids have 'strong foundations' will help build a similarly strong foundation for the U.S. economy.feedback

George Selgin

The bigger the Fed's credit footprint, the more it interferes with the efficient employment and pricing of credit. By directing a large share of savings to purchases of longer-term MBS and Treasury securities, for example, the Fed has artificially raised both the prices of those securities, and the importance of the housing market and the federal government relative to the rest of the U.S. economy. It has also dramatically increased its portfolio's duration gap and, by so doing, the risk that it will suffer losses should it sell assets before they mature.feedback

Daan Struyven - Goldman Sachs Group

This could be important for balance sheet policy because many Republican-leaning economists have criticized quantitative easing (QE) and have expressed a preference for rapid balance sheet rundown, perhaps even through asset sales. Our forecast is that the discussion around reinvestment continues for most of this year and the plan is formally announced in December 2017. At that meeting, we expect the committee to hold the funds rate steady after hiking in both June and September. We expect the quarterly hikes to resume in March 2018.feedback

Robert Halver - Baader Bank

The markets are relaxed for two reasons: first, the Dutch voted in favour of Europe which definitely helps the European atmosphere. I am convinced the French will also vote the same. The other issue is that the US rate increase happened as expected. The rate hike is being interpreted as the US economy doing better than expected. So, a rate hike is acceptable. But much more important is that Fed Chair Janet Yellen made it clear we shouldn't worry about more rate increases any time soon.feedback

Alex Edwards - European Central Bank

The euro has reacted positively to Rutte's win, or at least it's been well supported since the result. The Fed decision and statement last night got more of a reaction - Yellen was a lot less hawkish than investors were expecting. Expect EUR/USD ranges to be fairly narrow over the next month or so in the run up to the much anticipated French elections, arguably the biggest market event of the year.feedback

Janet L. Yellen - Federal Reserve System

We're operating in an environment where the U.S. economy is performing well and risks seem pretty balanced. I think people can feel pretty good about the economic outlook.feedback

Janet L. Yellen - Federal Reserve System

The unemployment rate has moved way down and many more people feel optimistic about their prospects in the labor market. There's job security. We're seeing more people who are feeling free to quit their jobs, getting outside offers for other opportunities. So I think the job market, which is an important focus for us, is certainly improving.feedback

Janet L. Yellen - Federal Reserve System

What we'd want to have is confidence in the economy's trajectory, a sense that the economy will make progress, that we're not overly worried about downside risks with adverse shocks that could hurt the economy.feedback

Janet L. Yellen - Federal Reserve System

Our short-term interest rate target is our key active tool of policy. We think it's much easier using that tool to communicate the stance of policy. We have much more experience with it and have a better idea of its impacts on the economy.feedback

Janet L. Yellen - Federal Reserve System

That is a great question. I appreciate your asking it. The simple message is the economy is doing well. We are seeing more people who are feeling free to quit their jobs, getting outside offers, looking for other opportunities. I think the job market which is an important focus for us is certainly improving. We know there are problems that face particularly people with less skill and education, and in certain sectors of the economy.feedback

Jared Bernstein

The story regarding the Fed right now is less about today's expected rate hike and more about the tension between Trump's ideas and the policies that would really help the economy.feedback

Christopher Whalen

They're late. What they should have done was stopped reinvestment at the end of last year, mostly as a symbolic gesture. Then you could selectively let the (trading) desk (at the New York Fed) sell MBS when there's a rally – trickle the stuff out, get 100 to 200 billion (dollars) off the books each quarter. The street is starving. These are all signals the Fed should be paying attention to.feedback

Andrew Hollenhorst - Citigroup Global Markets
Ebrahim Rahbari - Citigroup Global Markets

Chair Yellen has previously indicated that balance sheet reduction will occur once the FOMC has 'confidence the economy is on a solid course'. Any calendar or policy rate threshold guidance relative to market expectations of Q1 2018 would provoke a market reaction.feedback

Peter Boockvar - The Lindsey Group

If you let the balance sheet start to run off, you'd see a rise in long-term interest rates. You'd have gotten an immediate steepening of the yield curve. The Fed did it somewhat backwards.feedback

Christopher Whalen

The problem is, they should be adjusting the balance sheet first. By keeping all of this duration locked up at the Fed, they're actually keeping rates artificially low, so there's no response to policy. When they change the fed funds, the whole curve should move, but it doesn't.feedback

Mark Hamrick

Right now the number one question is what is the likelihood that rates could be rising more aggressively than what people and investors currently expect. The two words that Janet Yellen seems to be voicing more often lately is 'policy uncertainty.' That is as close to directly referencing the outcome of the election ... as she is going to get.feedback

Robert Halver - Baader Bank

With the economy improving a rate increase is doable, but what's much more important is what comes next. I believe Janet Yellen will continue to play her rate game, but you musn't be scared that there are going to be further radical rate increases. Her rate changes will be gradual. No one will get hurt because she knows full well that with the world's debt as it is, a sharp rate increase is not manageable.feedback

Omer Esiner - Commonwealth Foreign Exchange

Any hint that further policy normalization over the coming months is likely should keep the dollar biased higher. Additional hikes in June and September would open up the calendar for a possible fourth interest rate hike this year at the Fed's final meeting of 2017 in December.feedback

James A. Wilcox

The thing that makes it relatively easy for the Fed is that fiscal policy usually takes a long time. Financial markets don't wait for all of that to happen, of course, but the actual spending and employment effects – they usually take a while to show up.feedback

Jon Faust

The thought that by tweaking the funds rate you could send some kind of political message is crazy, and they know that, and they're not going to do it. On the other hand, this is the first first quarter in about six years that isn't looking scary, so it's not surprising they would be considering a rate increase.feedback

Mitsushige Akino - Ichiyoshi Investment Management

The market is holding up well considering how much it had already rallied in the previous session. But we have the Fed meeting coming up. An interest rate hike by the Fed is almost fully expected, and with the yen unlikely to weaken much further with a tightening mostly priced in, participants are wary of taking domestic stocks much higher.feedback

Masahiro Ichikawa - Sumitomo Mitsui Asset Management

The markets are focusing on when the Fed will raise rates next time or the pace of its rate hike, so the tone of Fed Chair Janet Yellen will be closely watched.feedback

Dan Suzuki - Bank of America Merrill Lynch

In the near term, the commentary and the dot plot could drive a short-term movement in the market, but I wouldn't think it's going to be the spark of a long lasting sell-off in the market, given the macro backdrop is very supportive. But that doesn't mean you couldn't get a 1 percent down move on the day, if [Fed Chair Janet Yellen] sounds more hawkish or the dot plot comes in more hawkish than the market is expecting.feedback

Naeem Aslam - AvaTrade

The wage pressure was the key in today's data, and it has gained most significant attention among other readings. The wage number released today was not really a blowout number, but still a very decent one. Only if the number was extremely vile, then the Fed was going to stop their interest rate hike, but now it looks like that we are going to see a rate hike next week.feedback

Naeem Aslam - AvaTrade

This is the last piece of puzzle when it comes to the US interest rate hike which the Fed is going to make. So far the Fed has adopted a very hawkish tone when it comes to the interest rate hike.feedback

Bill Gross

In China, the ratio has more than doubled in the past decade to nearly 300 percent. Since 2007, China has added $24 trillion worth of debt to its collective balance sheet. Over the same period, the U.S. and Europe only added $12 trillion each. Keeping the cost of credit at a yield that is not too high, nor too low, but just right. (Federal Reserve chair) Janet Yellen is a modern day Goldilocks.feedback

Sean Spicer

Let me get back to you on that one. I don't have any comment on the Federal Reserve.feedback

Janet L. Yellen - Federal Reserve System

At our meeting later this month, the (Federal Open Market) Committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate. Given how close we are to meeting our statutory goals (of maximum employment and price stability), and in the absence of new developments that might materially worsen the economic outlook, the process of scaling back accommodation (raising interest rates) likely will not be as slow as it was in 2015 and 2016.feedback

Scott Redler

The market does have a bit of an exhaustive feel. I think the bears would love to think with two major events like the Trump address to Congress and the Snap IPO, with heavy valuations, and now Yellen pretty much signaling three rate hikes will happen, it would be the kind of week they sell the news and we finally get a corrective phase. Traders are trying to stay with the rally but the higher we go, the harder it is.feedback

Mark Cabana - Bank of America Merrill Lynch

This is quite unusual in relation to recent history. It does make one wonder if there was some kind of coordination, intentionally, to talk up the market. The last time we heard from Yellen and [Fed Vice Chair Stanley] Fischer, they were discussing a gradual approach. Just the drum beat of Fed speakers this week shows they at least wanted to have the option of going at this meeting. The fact the market is handling it means it would be disappointed and quite surprised if it didn't hike. That makes you think the Fed will follow through.feedback

Janet L. Yellen - Federal Reserve System

I really liked the form of reasoning. [Economics] has a way of analyzing issues that is systematic and it appealed to the math side of me.feedback

Janet L. Yellen - Federal Reserve System

It came together that my concern about people and jobs, and my love of math, found a happy marriage in economics.feedback

Ian Shepherdson - Pantheon Macroeconomics

The Fed will hike unless next week's payroll report is calamitous. That's unlikely, so we expect rates to rise.feedback

Janet L. Yellen - Federal Reserve System

Fiscal and regulatory policies – which are of course the responsibility of the administration and the Congress – are best suited to address such adverse structural trends.feedback

Janet L. Yellen - Federal Reserve System

The economy has essentially met the employment portion of our mandate and inflation is moving closer to our 2 percent objective. [We] realize that waiting too long to scale back some of our support could potentially require us to raise rates rapidly sometime down the road, which in turn could risk disrupting financial markets and pushing the economy into recession.feedback

Zoltan Varga

If the good mood returns next week, OTP could rise again.feedback

Roberto Perli - Cornerstone Macro

I think Yellen probably still would prefer to be cautious, but it is becoming hard for her to corral the growing number of FOMC members who prefer to move when, like now, there is a clear opportunity.feedback

Thomas Simons - Jefferies

All are on the same page, including hawks and doves, and especially Dudley. Hopefully, we'll see some consistency in the commentary of Brainard tomorrow, and if we see something neutral to slightly hawkish from Yellen Friday, you'll have to lock it in. The fact you had Harker, Williams, and Dudley all basically speaking at the same time and trying to make it clear a rate hike is coming is interesting four days before the blackout begins.feedback

Andrew Liveris

All the CEOs that were here today and in the last meeting are very encouraged by the pro-business policies of President Trumpand his cabinet.feedback

Richard Clarida - Pimco

March would make a lot of sense to me but if the Yellen Fed wants to get that priced in, they've got some work to do. This is a Fed that expects that if the data play out, they're going to be hiking three times this year. The only question for them is do they want to tee up the March meeting so that it's not a surprise or do they want to be really bold, not tee up the market and then hike in March.feedback