Federal Reserve: Yellen hosts press conference
In her press conference on Wednesday 18th March, the Federal Reserve Chairwoman, Janet Yellen, spoke on the economy, monetary policy and congressional proposals.
Janet Yellen emphasized on the Fed’s statement concerning the rise of the interest rate that seemed unlikely at the April meeting but which could be considered at any central bank policy meeting after that.
The Fed statement, however, allowed enough space for the central bank to move later during the year, stressing that any decision would depend on future data.
The Federal Reserve also opened the door to raising interest rates. Moreover, there has been a forecast that future economic growth would slow partly because of the stronger dollar and that the rate of unemployment could decrease while inflation would remain tame.
As a result, stocks rose suddenly and oil prices jumped to 5% after the Fed statement. In addition, the dollar tumbled against other major currencies. It was also noted that the U.S. 10-year Treasury yield dropped below 2% for the first time since the 2nd of March.
Goldman Sachs economist Jan Hatzius mentioned that the Fed's statement and projections suggested a rise in September rather than June, citing the "dot plot" shift and changes to the central bank's assessment of the economy.
The Federal Reserve’s funds rate has been low since December of 2008 and the rates were raised for the last time in June 2006, when a huge housing market and strong economic growth pushed it to raise its target rate to 5.25 percent.