The most important thing that Federal Reserve Chair Janet Yellen did during her speech on March 3 was not to deviate from the regulator’s general rhetoric and support the possibility of raising interest rates at the March 15 meeting, according to experts from ForTraders.org.
Yellen Made a Good Statement, but the Dollar Still Fell
Moreover, Yellen noted that the pace of interest rate increases in 2017 will not be as slow as in 2015 and 2016.
At the March meeting, the Fed will assess employment and inflation indicators to see if they meet the regulator’s goals. If the indicators fall within the Fed’s expectations, it would be appropriate to raise the interest rate. Employment has already reached the target, and inflation is almost there, said Yellen.
EUR/USD exchange rate today online
The market has no clear understanding of the future tax and budget policy of Trump and its consequences. In addition, the dollar has already risen significantly over the past week, according to Jefferies Group, and further growth looked difficult.
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FAQ
Why did the dollar fall despite Yellen’s statement?
The dollar fell due to uncertainty about Trump’s future policies and the fact that the dollar had already risen significantly in the previous week.
What did Yellen say about interest rates?
Yellen stated that the pace of interest rate increases in 2017 would not be as slow as in 2015 and 2016.
What factors influence the dollar’s value?
Factors such as employment data, inflation, and political developments can influence the dollar’s value.
