Investors Focus on Yellen’s Message

Investors trying to divine the outlook for Federal Reserve interest-rate moves are ignoring the dots and focusing on Chair Janet Yellen’s words.

Fed officials today released forecasts, represented as dots on charts, showing that starting next year interest-rates would rise from zero faster than previously expected. Equity markets rallied on Yellen’s pledge of monetary stimulus for as long as necessary to achieve the central bank’s goals.

Yellen brushed aside concerns about quickening inflation, diminishing labor-market slack and asset-price bubbles in her opening statement and press conference, emphasizing the Federal Open Market Committee’s view that rates are likely to stay low “for a considerable time.”


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