• Cautious approach on rates allows time to assess if economic growth is rebounding and if outlook for labor market, inflation will improve

  • Available indicators point to ‘noticeable step-up’ in Q2 GDP. Consumer spending helped by solid income growth

  • Fed to assess whether growth, jobs and inflation will gain

  • China faces significant challenges to rebalancing

  • Pickup in household spending makes her optimistic that jobs market and overall economy will improve over next few months

  • Reiterates that FOMC expects to gradually raise rates

  • Tentative signs of wage growth finally picking up

  • Watching jobs market carefully to see if slowdown transitory

  • Stock market forward P/E ratios well above three-decade median.

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