This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2017/mar/15/federal-reserve-interest-rates-uk-unemployment-business-live
The article has changed 22 times. There is an RSS feed of changes available.
| Version 19 | Version 20 |
|---|---|
| Janet Yellen says 'US economy is doing well' after raising interest rates - live updates | Janet Yellen says 'US economy is doing well' after raising interest rates - live updates |
| (35 minutes later) | |
| 8.05pm GMT | |
| 20:05 | |
| Shares may be up today, but Goldman Sachs is worried that the rally may be over. | |
| Earlier today the bank’s strategists lowered their three-month outlook for global stocks to neutral, while staying overweight cash and underweight bonds. | |
| More here: Goldman Turns Cautious on Stocks as Fed Threatens to Upset Calm | |
| 7.43pm GMT | |
| 19:43 | |
| The US stock market is continuing to climb. | |
| The Dow is now up 127 points, or 0.6%, at 20,966, with less than 20 minutes until the closing bell. | |
| Tech investors love Yellen. Nasdaq now only about 3 points from all-time high. Nasdaq 6,000 is less than 100 points away. | |
| 7.41pm GMT | |
| 19:41 | |
| Dollar slides as Fed remains cautious on rate hikes | |
| The US dollar continued to slide against other major currencies as Janet Yellen held her press conference. | |
| Traders are concluding that the Fed is still only planning to tighten monetary policy gradually - given policymakers expect two more hikes this year, and three in 2018. | |
| Yellen’s comments about how the Fed is comfortable about allowing inflation to overshoot its target (see here) are also seen as dovish. | |
| The British pound has jumped by 1.25 cents to $1.228, a two week high. | |
| The dollar is also trading at a two-week low against the Japanese yen, down over 1% today. | |
| And the euro has hit a five week high, gaining around 1 cent to $1.07. | |
| #Euro jumps above $1.07 as Yellen is suddenly the best friend of Trump. Welcomes growth policy which is "not a point of conflict" w/ admin. pic.twitter.com/o08zyV2eEu | |
| 7.35pm GMT | |
| 19:35 | |
| 7.32pm GMT | 7.32pm GMT |
| 19:32 | 19:32 |
| Last question: | Last question: |
| Q: Some people think it’s too early to raise interest rates, because wage growth has been too low. | Q: Some people think it’s too early to raise interest rates, because wage growth has been too low. |
| I would like to see wages increase, and think there is scope for them to increase further, Yellen replies. | I would like to see wages increase, and think there is scope for them to increase further, Yellen replies. |
| But, the Fed’s goal is to achieve maximum employment and low, stable inflation. That’why it hiked the Fed funds rate to 1% today. | But, the Fed’s goal is to achieve maximum employment and low, stable inflation. That’why it hiked the Fed funds rate to 1% today. |
| She also points out that slow productivity growth has been holding down wage rises. | She also points out that slow productivity growth has been holding down wage rises. |
| 7.24pm GMT | 7.24pm GMT |
| 19:24 | 19:24 |
| Asked about regulatory issues, Yellen replies that the Fed has a “relatively light” regulatory agenda at present. | Asked about regulatory issues, Yellen replies that the Fed has a “relatively light” regulatory agenda at present. |
| There’s nothing we need to get out right now, she adds. | There’s nothing we need to get out right now, she adds. |
| Updated | Updated |
| at 7.32pm GMT | at 7.32pm GMT |
| 7.20pm GMT | 7.20pm GMT |
| 19:20 | 19:20 |
| Yellen is asked about the possibility of a border tax. | Yellen is asked about the possibility of a border tax. |
| She says it’s “very uncertain” how the dollar would be affected by such a move. | She says it’s “very uncertain” how the dollar would be affected by such a move. |
| 7.19pm GMT | 7.19pm GMT |
| 19:19 | 19:19 |
| Q: The Fed’s statement today says that your inflation target is symmetric - so how high would you be happy to see inflation rise? | Q: The Fed’s statement today says that your inflation target is symmetric - so how high would you be happy to see inflation rise? |
| Two percent inflation is not a ceiling, it’s a target, Yellen replies. There will be times when it will be above that target. | Two percent inflation is not a ceiling, it’s a target, Yellen replies. There will be times when it will be above that target. |
| If inflation appears to be persistently over target, though, the Fed would have to take action. | If inflation appears to be persistently over target, though, the Fed would have to take action. |
| 7.17pm GMT | 7.17pm GMT |
| 19:17 | 19:17 |
| Yellen: The economy is doing well | Yellen: The economy is doing well |
| Q: What message are you trying to send to US consumers with this interest rate hike? | Q: What message are you trying to send to US consumers with this interest rate hike? |
| Great question, Yellen replies, before declaring: | Great question, Yellen replies, before declaring: |
| The simply message is that the economy is doing well | The simply message is that the economy is doing well |
| She adds that the Fed has confidence in the economy, and its resilience to shocks. The labor market is strengthening - although obviously not everyone is feeling the benefits. | She adds that the Fed has confidence in the economy, and its resilience to shocks. The labor market is strengthening - although obviously not everyone is feeling the benefits. |
| Fed Chair Yellen on what her message to consumers is with today's rate hike: "The economy is doing well." https://t.co/qcDqs8EGGW pic.twitter.com/CAdmNZVDLF | Fed Chair Yellen on what her message to consumers is with today's rate hike: "The economy is doing well." https://t.co/qcDqs8EGGW pic.twitter.com/CAdmNZVDLF |
| 7.13pm GMT | 7.13pm GMT |
| 19:13 | 19:13 |
| Yellen is asked about calls for a new Glass-Steagall Act (to prohibit commercial banks getting involved in risky investment banking). | Yellen is asked about calls for a new Glass-Steagall Act (to prohibit commercial banks getting involved in risky investment banking). |
| “I don’t know what a 21st century Glass-Steagall would look like,” Yellen replies wryly. | “I don’t know what a 21st century Glass-Steagall would look like,” Yellen replies wryly. |
| But she doesn’t think that the repeal of Glass-Steagall (during Bill Clinton’s presidency) was a major factor causing the financial crisis. | But she doesn’t think that the repeal of Glass-Steagall (during Bill Clinton’s presidency) was a major factor causing the financial crisis. |
| Updated | Updated |
| at 7.14pm GMT | at 7.14pm GMT |
| 7.10pm GMT | 7.10pm GMT |
| 19:10 | 19:10 |
| Q: The latest GDP figures weren’t very impressive, unemployment hasn’t changed much, and consumer spending isn’t roaring - so why do you feel forced to raise interest rates today? | Q: The latest GDP figures weren’t very impressive, unemployment hasn’t changed much, and consumer spending isn’t roaring - so why do you feel forced to raise interest rates today? |
| Yellen replies that GDP is quite a ‘noisy’ indicator. Other economic data suggests the economy continues to strengthen. | Yellen replies that GDP is quite a ‘noisy’ indicator. Other economic data suggests the economy continues to strengthen. |
| SPOTTED: GDP as defined by Janet Yellen#Noisy pic.twitter.com/s6ZjYV3yoY | SPOTTED: GDP as defined by Janet Yellen#Noisy pic.twitter.com/s6ZjYV3yoY |
| Q: So what if the economy doesn’t strengthen? Might you raise rates less rapidly than you expect? | Q: So what if the economy doesn’t strengthen? Might you raise rates less rapidly than you expect? |
| Policy isn’t preset, Yellen replies, and it depends on the data*. The Fed will act in a way that encourages further job creation while bringing the real interest rate back towards its neutral level. | Policy isn’t preset, Yellen replies, and it depends on the data*. The Fed will act in a way that encourages further job creation while bringing the real interest rate back towards its neutral level. |
| * - unless it’s ‘noisy’, I guess.... | * - unless it’s ‘noisy’, I guess.... |
| 7.04pm GMT | 7.04pm GMT |
| 19:04 | 19:04 |
| Q: Are you worried about the consequences if Donald Trump’s proposed tax cuts and spending increases aren’t enacted? | Q: Are you worried about the consequences if Donald Trump’s proposed tax cuts and spending increases aren’t enacted? |
| Yellen says there is an obvious, notable shift in sentiment - but there’s no sign that this has translated into higher spending. The Fed is watching closely in case this changes. | Yellen says there is an obvious, notable shift in sentiment - but there’s no sign that this has translated into higher spending. The Fed is watching closely in case this changes. |
| Yellen: "I haven’t seen hard evidence of any change in spending decisions based on expectations about the future.” | Yellen: "I haven’t seen hard evidence of any change in spending decisions based on expectations about the future.” |
| 7.01pm GMT | 7.01pm GMT |
| 19:01 | 19:01 |
| On the global economy, Yellen says the situation has improved. | On the global economy, Yellen says the situation has improved. |
| But there are still uncertainties, which G20 finance ministers and central bankers will discuss at their meeting this weekend. | But there are still uncertainties, which G20 finance ministers and central bankers will discuss at their meeting this weekend. |
| 7.00pm GMT | 7.00pm GMT |
| 19:00 | 19:00 |
| Yellen is asked about the recent strong stock market rally. | Yellen is asked about the recent strong stock market rally. |
| She says that the higher level of equities has helped to ease financial conditions. | She says that the higher level of equities has helped to ease financial conditions. |
| Yellen: Financial conditions on balance have eased, that's partly driven by stock market. That is a factor that affects outlook. | Yellen: Financial conditions on balance have eased, that's partly driven by stock market. That is a factor that affects outlook. |