Yellen “Dovish”, Sees Economy Healing

Peter’s Commentary:

Fed Chair Janet Yellen was fairly “dovish” today with her comments. Inflation is currently below the 2% target rate.

Yellen Caricature

Yellen Caricature
By DonkeyHotey

Yellen said that the inflation rate needs to move up to the 2% target before the Fed will consider increasing interest rates. At present the Fed is not seeing any significant pickup in wage growth. Because wages are generally a lagging indicator, the Fed is monitoring a broad range of information and data that looks at the inflation rate.

Increase In Interest Rates

It sounded like we could be looking at June or September before we see any increase in interest rates.

Strongly Against “Audit The Fed”

Yellen also stated that she strongly opposes any move to “Audit The Fed”. Bearing in mind the last public audit was carried out 62 years ago, it’s highly unlikely that we’ll see any progress on that issue.

Gold?

With no clear picture of when interest rates will be raised, it is not surprising that gold did not make any strong move one way or the other today.

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