Janet Yellen

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As predicted, the Federal Reserve kept short-term interest rates unchanged at near zero yesterday but signalled that a rate hike before the turn of the year remains a possibility. As was the case in September, the central bank’s accompanying statement did not explicitly mention concerns over the Chinese economy as a reason not to raise rates for the first time in a decade. Last month they cited turbulent financial markets and uncertain economic developments overseas as reasons fo…

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Oil prices have flattened over the last couple of days, halting a huge sell-off from Monday; investors are still cautious as fears remain over China's economic slowdown and hefty global supplies. The sell-off on Monday came after news that Chinese industrial profits slumped in August, with the biggest drops concentrated in producers of coal, oil and metals. Commodity and equity traders will get more evidence about China's economic performance tomorrow when final manufactu…

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The Federal left short-term interest rates unchanged ending weeks of debate whether it was the right time to end an era of near-zero rates in acknowledgment of the ever improving US economy and job market. A majority of Fed officials still believe the central bank will raise rates before the end of 2015, but the central bank showed a little less conviction with the number of officials in favour slipping to 13 from 15 back in June. Janet Yellen noted in a press conference after th…

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Speculation and anticipation is growing and not just among economists, as Fed Chairman Janet Yellen is running out of excuses not to raise interest rates at next week’s Federal Reserve policy meeting. It seems that just about every indicator is saying a move would cause government bonds and the equity market little disruption but the debate remains whether the US economy has recovered sufficiently to allow the tightening of monetary policy to begin. Investors and the public…

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The Federal Reserve kept interest rates at near zero once more last night but continued to fuel the ever intensifying fire of speculation concerning when the first rate hike in nine years will be. Chairman Janet Yellen primed the markets in her Statement with positive US economy sentiments, primarily citing progress in the US job market as the main instigator. The US unemployment rate has decreased from 10% in 2009 to 5.3% in July of this year. Yellen’s wording of ‘hiring g…

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On Wednesday, the US preliminary GDP reading disappointed markets (0.2% vs 1% expected). Throughout the US trading session the USD weakened against the major currencies after the disappointing print. GBPUSD traded towards the highest level of 2015 (1.5550), trading to a session high of 1.54960. EURUSD was bid on the USD weakness, breaking firmly above 1.10, then 1.11 and currently 1.1230. FOMC decision At 19:00 (London) the FOMC rate decision was released, with as markets had exp…

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The US Department of Labor will release their monthly employment report, Non-Farm Payrolls at 13:30pm (London). The pivotal data is usually released on the first on the first Friday of each month, and is a good barometer of the health of the US economy. The figures vary widely, causing significant volatility at the time of release as traders react to the figures. The market consensus is for the Fed is to begin tightening in June with economy growing Yellen will begin exiting the ultra-…

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The eagerly anticipated monthly US employment release is today at 13:30 BST (London). The Depart for Labor releases the Non-Farm payroll employment report, which covers jobs in goods, manufacturing, and construction companies but excludes farm workers, non-profit organisations and private households. This release will closely watched by traders following the abysmal US Q1 GDP release of 0.1% growth. The figure was a huge disappoint, though the cold weather has been largely blamed for t…

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The new chairman of the Federal Reserve Janet Yellen continued where Ben Bernake left off. On Wednesday evening the it was announced that the Federal Reserve would taper their monthly asset purchases by $10bn in April, as they had in recent months, easing the US economy from the stimulus as growth begins to gain pace. As expected interest rates were left unchanged at the record low of 0.25%, but hinted that rates could rise in 2015, which would be about 6 months after it is has finished its…

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Janet Yellen the newly appointed Federal Reserve Chairwoman will make her first public appearance today. The greenback is trading near a two-week high, as investors believe that Yellen will have a dovish outlook, and will leave the level of stimulus unchanged. Ben Bernanke the previous Fed Chairman had begun the tapering process, as the US economy is weaned off of the ultra-loose monetary policy. Fridays employment data, was a disappointment which some analysts believe will be one of t…

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The Federal Open Market Committee concluded their two day meeting on Wednesday and voted unanimously to taper the level of monthly asset purchases by $10bn from the 1st February. At Ben Bernanke’s final meeting, the reduction of asset purchases was split equally between Treasury’s and mortgage-backed securities (MBS). The pace is now expected to continue with a monthly reduction of $10bn as the Fed attempts to wean the US economy from the ultra loose fiscal policy. Some ana…

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On Wednesday evening (London) the FOMC completed their two day meeting and announced the Fed would start tapering the amount of assets purchased each month. Analysts and market commentators were mixed as to their views, with the minority expecting Bernanke to act in December with the majority believing the Fed would wait until January or even March. The release came at 7pm London that the Federal Reserve is reducing the current level of asset purchases to $75bn from the previous monthl…

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The US Federal Reserve currently purchases $85 a month of assets, combined with low interest rates to help stimulate economic growth. The markets speculation as to when the Fed will begin to Taper, this programme of quantitative easing has some believing it could be on Wednesday at 2pm. The main focus for traders this week, before the holiday lull, will be does Bernanke start tightening at his final meeting as Chair of the Fed, before Janet Yellen takes over. The markets are awash with…

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