FXStreet (Guatemala) – Analysts at TD Securities explained that with the hike now in hand, Yellen’s message is likely to be focused on the post-liftoff path for rates.
Key Quotes:
“With particular emphasis on the data-dependency of any future policy action and the expected “gradual” path forward for rates. She could also use this platform to articulate the Fed’s view on the reinvestment program, which is another avenue for the Fed to send a signal of its dovish intentions.
Ultimately, we expect Yellen to come across as dovish, though it is unlikely to be enough for the market to interpret the Fed’s action on the day as a “dovish hike.””
(Market News Provided by FXstreet)