Friday, August 22, 2014

"The Market Reacts To (Then Reads) Janet Yellen's Speech"

That's the headline at ZeroHedge.
Here's the speech via FT Alphaville:

Janet Yellen’s speech at Jackson Hole
You can read it here.

And below is an excerpt:
As the recovery progresses, assessments of the degree of remaining slack in the labor market need to become more nuanced because of considerable uncertainty about the level of employment consistent with the Federal Reserve’s dual mandate. Indeed, in its 2012 statement on longer-run goals and monetary policy strategy, the FOMC explicitly recognized that factors determining maximum employment “may change over time and may not be directly measurable,” and that assessments of the level of maximum employment “are necessarily uncertain and subject to revision.”4 Accordingly, the reformulated forward guidance reaffirms the FOMC’s view that policy decisions will not be based on any single indicator, but will instead take into account a wide range of information on the labor market, as well as inflation and financial developments.

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