The nominee to chair the Federal Reserve will be questioned by the Senate Banking Committee on Thursday at 10 a.m. Eastern, at a time when markets have changed their tune on when the central bank may start reducing its bond purchases.
Yellen has never been in a hurry to taper, but the jobs data released Friday offer some food for thought.
Over the last year, jobs growth has averaged 194,000 per month — a sign of an economy in which the labor market is making genuine if not rapid progress. To be sure, the 7.3% unemployment rate is still high, but is it high enough to warrant the extra accommodation provided by the central bank’s $85 billion-per-month in asset purchases?
That’s what the market wants to know from her confirmation hearing.
via MarketWatch
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza