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31 Mar 2014
Yellen's dovish words send dollar down
FXStreet (Łódź) - Fed Chairwoman Janet Yellen, who spoke at a conference in Chicago on Monday, defended the central bank's easy monetary policy stance saying that it was aimed at reducing the still considerable slack in the US economy and the labor market.
Yellen stressed that the Fed's "extraordinary commitment," to stimulus was still necessary and would be for some more time. She also hinted that interest rates would be kept low for an extended period.
The Fed head listed the large numbers of part-time workers and long-term unemployed, low wage growth, and the decline in labor force participation as indications of the continuing slack in the US labor market. She also pointed out that for some Americans the current economic situation was tougher than during the recession.
Stocks spiked following Yellen's comments and the EUR/USD jumped to 1.3806.
In the opinion of Jamie Coleman from FXBeat “she is trying to change whatever perception there may have been that rates will automatically go up six months after the taper ends this fall.”
Yellen stressed that the Fed's "extraordinary commitment," to stimulus was still necessary and would be for some more time. She also hinted that interest rates would be kept low for an extended period.
The Fed head listed the large numbers of part-time workers and long-term unemployed, low wage growth, and the decline in labor force participation as indications of the continuing slack in the US labor market. She also pointed out that for some Americans the current economic situation was tougher than during the recession.
Stocks spiked following Yellen's comments and the EUR/USD jumped to 1.3806.
In the opinion of Jamie Coleman from FXBeat “she is trying to change whatever perception there may have been that rates will automatically go up six months after the taper ends this fall.”