7 May 2014
Fed's Yellen: QE taper to continue in 'measured steps', no specific timeline for rate hike
FXStreet (Łódź) - During the Q&A part of the testimony Janet Yellen says that as long as inflation is moving towards the 2% target and the USeconomy improves the Fed anticipates reducing the QE program in “measures steps.”
• "There is no mechanical formula or timetable for when that will occur," says Yellen when asked about when will Fed start rising rates.
• First rate hike will depend on progress made on Fed mandate.
• “I can't give a number for the appropriate size of the Fed's balance sheet.”
• Ultimately it will move down to substantially lower levels but no certainty that it will return to pre-crisis levels, the Fed head says.
• "There is no mechanical formula or timetable for when that will occur," says Yellen when asked about when will Fed start rising rates.
• First rate hike will depend on progress made on Fed mandate.
• “I can't give a number for the appropriate size of the Fed's balance sheet.”
• Ultimately it will move down to substantially lower levels but no certainty that it will return to pre-crisis levels, the Fed head says.