We remain in a calm and collected market. The S&P 500 gained 0.28% and the NASDAQ 0.14%. Fed Chair Janet Yellen had testimony in front of Congress and nothing was a surprise – if anything the remarks were quite dovish.
Yellen’s prepared remarks said no rate hike is expected for the next few FOMC meetings. She later said in a question-and-answer session that the Fed would not raise rates before it found confidence in the economic recovery, overcoming current concerns about the labor market, below-objective inflation and the decline in energy prices. She repeated that the Fed’s pledge to be “patient” on beginning to raise the benchmark interest rate means an increase is unlikely for “at least the next couple” of meetings. The central bank adopted the guidance in December and repeated it in January.Continue reading