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10 Feb 2014
Flash: Will Yellen resist the rearguard action of the hawks?
FXStreet (San Francisco) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, pointed that Yellen’s first testimony on Tuesday February 11 will be key to see how the Fed will act in the coming months. However, he thinks the moderation wouldn't happen until the H2 due macroeconomic factors.
Key Quotes
"The wing of the Fed that was associated with the doves favors continued measured slowing of the long-term asset purchases. The wing that is associated with the hawks advocates quickening the pace."
"Yellen will resist the rearguard action of the hawks and she will likely have the macro economic developments on her side. That is to say that after accelerating in H2, US economic activity is likely to moderate."
"Three main forces are at work: inventory rundown, inclement weather, and the rise in interest rates. Last week’s trade figures warn that Q4 GDP is likely to be revised lower. This week’s main economic report is January retail sales. We already know that auto sales and chain store sales were softer.
Key Quotes
"The wing of the Fed that was associated with the doves favors continued measured slowing of the long-term asset purchases. The wing that is associated with the hawks advocates quickening the pace."
"Yellen will resist the rearguard action of the hawks and she will likely have the macro economic developments on her side. That is to say that after accelerating in H2, US economic activity is likely to moderate."
"Three main forces are at work: inventory rundown, inclement weather, and the rise in interest rates. Last week’s trade figures warn that Q4 GDP is likely to be revised lower. This week’s main economic report is January retail sales. We already know that auto sales and chain store sales were softer.