• Opening remarks of FED chairwomen, Janet Yellen, in front of the US senate

Market news

21 June 2016

Opening remarks of FED chairwomen, Janet Yellen, in front of the US senate

  • 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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