Investors should be prepared to see a more hawkish Janet Yellen than in the past, two analysts said Tuesday. “I don’t believe we can ultimately put Yellen in the dovish bucket. She’s a very pragmatic chair, and she’s been moving gradually to a centrist position for well over a year now,” Jennifer Vail, CIO of U.S. Bank Wealth Management, told CNBC’s “Squawk on the Street.” “I think the markets might be expecting too dovish comments coming from the FOMC meeting this week.”
The Federal Open Market Committee began its two-day meeting on Tuesday, with investors expecting the Fed to drop the word “patient” from its statement on Wednesday, thus paving the way for a midyear rate hike.
Drew Matus, UBS’ deputy chief U.S. economist, in the same interview agreed with Vail. “In her past iterations, she has not been as dovish. People tend to forget Janet Yellen tends to adjust to the role she has, and the role she has now is the leadership role. I think we’re going to see something we’ve never seen before out of her.”
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