Janet Yellen has unveiled a “monetary policy toolkit” to maintain control over the uncertain US market, in her speech in Jackson Hole on Friday.
She conceded that the case for raising interest rates has “strengthened” but did not highlight any immediate plans. Whilst performance remained “solid”, business investment stayed soft and economic growth was slow, leading Yellen to abstain from giving a definite date for a rate hike.
The Fed have designed a “monetary policy toolkit” to allow its action to stimulate further growth in the US market, after highlighting the effectiveness of the last toolkit unveiled in December.
Reactions to the highly-anticipated speech have been mixed, with some taking her comments as a hawkish intention to raise rates before the end of the year. Her lack of definite date for a rise, however, means little solid evidence can be drawn from the speech.
26/08/2016
