Jackson Hole: Dollar rises after Yellen’s speech (Fed) – The Echoes

Jackson Hole: Dollar rises after Yellen's speech (Fed) – The Echoes

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A Jackson Hole, the venue Annual -you major central bankers speech that is arguably the most powerful woman in the world, Janet Yellen, president of the Federal Reserve, sought very nuanced. The first sentence of his speech, however, shows a slight inflection. The boss of the Fed notes that “the economy has improved significantly after the air hole in terms of the strongest and longest since the Great Depression jobs.” Janet Yellen immediately reminded that the jobs created during the recovery exceeded those lost during the crisis.

For the markets, this is the signal that we must prepare for an accelerated rate of rise in interest rates in the United States. Suddenly, the greenback grew 0.3% against major currencies on Friday afternoon just. The euro slid to 1.3230 and the dollar, its lowest level since almost a year.

“This is a classic speech bill, which does not deliver very significant indication” Rob Carnell at ING analysis. “But we still think that the tone of the Fed at its September meeting will be a little less accommodating (…).” The team believes that ING rise in interest rates is therefore conceivable in April 2015

Janet Yellen confirmed that the outstanding support from the Fed to the American economy – the program of “quantitative easing” or QE – will end in October. The president of the Fed warned that there is no “simple recipe” for monetary policy in light of the current state of the American labor market. It is not yet fully recovered from the crisis, she judge. Tighten monetary policy too soon could well hinder his recovery, she said. But she also said that the Fed is reserved the right to raise interest rates sooner than expected if employment increased faster.

A growing number of voices from within the Fed, argue for a future monetary tightening, which would mark the end of years of political crisis.

The speech of Mario Draghi, President of the European Central Bank (ECB) is also expected. Pressure is mounting for the ECB to launch a comprehensive plan of purchases of financial assets to fight against the threat of deflation in the euro zone.

The following is the full speech by Janet Yellen (English)

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