Janet Yellen: Fed To Stay The Course On Taper - Full Testimony

Just as Goldman has predicted (and the market had seemingly hoped would not happen), Janet Yellen, in her first speech as new Fed chair "stayed the course" on the Taper:

  • *YELLEN SAYS FOMC LIKELY TO CONTINUE QE TAPER IN MEASURED STEPS
  • *YELLEN SAYS RECOVERY IN LABOR MARKET IS `FAR FROM COMPLETE'
  • *YELLEN SAY FED TO `CONTINUE TO MONITOR FOR EMERGING RISKS'
  • *YELLEN: MAIN RATE LIKELY TO BE LOW WELL PAST 6.5% JOBLESS RATE

Of course, the Q&A (and hawkish follow-up panel) may well be the "common knowledge" setting moment for today but for now, the Taper is on and forward-guidance

Pre-Yellen: S&P Futs 1801, Gold $1285, 10Y 2.68%, USDJPY 102.3

 

On Growth...

*YELLEN PREDICTS MODERATE GROWTH IN ECONOMY, JOBS IN 2014, 2015
*YELLEN SAYS ECONOMY GAINED MORE TRACTION IN 2ND HALF 2013

On Inflation...

*YELLEN EXPECTS INFLATION TO MOVE TOWARD 2% `OVER COMING YEARS'
*YELLEN SAYS SOME SOFTNESS IN INFLATION LIKELY TO BE TRANSITORY

On Jobs...

*YELLEN SAYS `TOO MANY AMERICANS REMAIN UNEMPLOYED'
*YELLEN SAYS UNEMPLOYMENT RATE DOESN'T GIVE FULL VIEW OF JOBS
*YELLEN SAYS RECOVERY IN LABOR MARKET IS `FAR FROM COMPLETE'
*YELLEN: MAIN RATE LIKELY TO BE LOW WELL PAST 6.5% JOBLESS RATE
*YELLEN SAYS FOMC LIKELY TO CONTINUE QE TAPER IN MEASURED STEPS
*YELLEN REITERATES SHE `STRONGLY' SUPPORTS CURRENT FOMC POLICY

On Taper

*YELLEN `COMMITTED TO ACHIEVING BOTH PARTS OF OUR DUAL MANDATE'
*YELLEN SEES `GREAT DEAL OF CONTINUITY' IN MONETARY POLICY
*YELLEN SAYS BOND PURCHASES BY FED `NOT ON A PRESET COURSE'
*YELLEN: HIGHLY ACCOMMODATIVE POLICY APPROPRIATE AFTER QE ENDS

On EM Risks...

*YELLEN: GLOBAL MARKET SHIFTS NOT A BIG RISK TO U.S. OUTLOOK
*YELLEN SAY FED TO `CONTINUE TO MONITOR FOR EMERGING RISKS'

 

Wordcloud of Yellen's speech:

Full prepared remarks (pdf)