US: All eyes on Yellen’s testimony – Lloyds Bank

In the US, Federal Reserve Chair, Janet Yellen will deliver her semi-annual monetary policy update to the House Financial Services Committee and will be keenly watched by investors.

Key Quotes

“Her comments are unlikely to deviate materially from the FOMC’s central views, which were presented extensively at the last FOMC meeting and in the July Monetary Policy Report, which was released last Friday. It is likely she reiterates that one further rate hike this year and a start to the balance sheet reduction process are plausible this year. Although, with this being predicated on the assumption that the recent dip in inflation will be transitory, she is likely to be grilled on this, particularly given the continued weakness of headline CPI.”