Yellen: a slight change in comments
The Fed’s Chairwoman Janet Yellen said on Thursday that the Federal Reserve was looking closely at a recent run of disappointing economic data as it considers how quickly to taper QE. According to Yellen, cold weather had contributed to the slowdown, but that the Fed hadn’t been able to determine whether the harsh winter across the eastern half of the nation was a complete explanation.
It means that the Fed has finally admitted that it can no more ignore the stream of the recent disappointing data. That’s a change from what we’ve heard from Yellen 2 weeks ago. Still, the description of the Fed’s tapering plans hasn’t changed: the Fed said it probably would keep reducing its monthly purchases of Treasury and mortgage-backed securities.