Yellen stressed that a modification of the forward guidance will not indicate the central bank will raise interest rate in a couple of meetings. "Instead the modification should be understood as reflecting the Federal Open Market Committee's (FOMC) judgment that conditions have improved to the point where it will soon be the case that a change in the target range could be warranted at any meeting," said Yellen. It means the central bank will have the leeway to raise the interest rate at any time it judges the economic data warrant it.
According to its recent policy meeting minutes
air max tn kopen , Fed officials have expressed the concern that removing the "patient" language might trigger market expectations that the Fed will raise rates in an "unduly narrow range of dates", and then lead to market overreaction and result in undesirably tight financial conditions.
Yellen's remarks on Tuesday tend to assure the market the Fed will be flexible in rate hikes after "patient vow" changes
