Yellen: Expect a similar, balanced message during upcoming testimony – RBC CM

Research Team at RBC Capital Markets, suggests that the Yellen will deliver semi-annual Congressional Testimony which is likely to be an important event in the coming week.

Key Quotes

“In the wake of the recent FOMC meeting and Yellen’s post-meeting press conference, it is hard to imagine that her testimony to Congress will differ at all from the message she just conveyed about the backdrop.

While the net result of the FOMC meeting was perceived as dovish, that was almost entirely a function of the shift lower in their “dots” (i.e., committee members’ assessment of appropriate monetary policy). The reality is that if you just isolate Yellen’s message, she was not particularly dovish. We expect a similar, balanced message during her upcoming testimony.”