National Association of Federal Credit Unions (NAFCU) Chief Economist Curt Long issued the following statement in response to Federal Reserve Chair Janet Yellen’s comments today before the Economic Club of New York.
“These were dovish remarks by Chair Yellen. In focusing on the downside risks to the economic outlook, she bolstered the case for the Federal Open Market Committee’s decision not to increase rates in March and for taking a very gradual approach to normalization,” said Long. “Moreover, she was somewhat dismissive of the hawkish claim that inflation has moved higher recently. Instead, she said, the evidence is flimsy at this stage and that inflation expectations have actually declined. Overall, the comments add serious doubt to the prospect for a rate hike in April.”