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9 Feb 2016
Janet Yellen testimony watched for rate clues – Lloyds Bank
Adam Chester, Head of Economics at Lloyds Bank, suggests that all eyes will be on Fed Chair Janet Yellen’s semi-annual economic address to the US Congress on Wednesday and Thursday.
Key Quotes
“While the markets don’t expect another rise in US interest rates until the end of the year at the earliest, the Federal Reserve has not yet confirmed that a March increase is off the cards. With last Friday’s US jobs data providing a mixed picture – employment in January rose by only 151,000, but the unemployment rate fell to just 4.9% and wage growth picked up - the markets will be watching for a clearer steer.
Otherwise, the focus will also be on politics, with the New Hampshire primary on Tuesday. Donald Trump could bounce back after a weaker-than-expected performance in Iowa, while another strong performance by Marco Rubio should help consolidate his position as the preferred ‘establishment’ candidate. In the Democrat camp, Bernie Sanders is predicted by some to trounce Hillary Clinton, who should do better in upcoming votes in southern states."
Key Quotes
“While the markets don’t expect another rise in US interest rates until the end of the year at the earliest, the Federal Reserve has not yet confirmed that a March increase is off the cards. With last Friday’s US jobs data providing a mixed picture – employment in January rose by only 151,000, but the unemployment rate fell to just 4.9% and wage growth picked up - the markets will be watching for a clearer steer.
Otherwise, the focus will also be on politics, with the New Hampshire primary on Tuesday. Donald Trump could bounce back after a weaker-than-expected performance in Iowa, while another strong performance by Marco Rubio should help consolidate his position as the preferred ‘establishment’ candidate. In the Democrat camp, Bernie Sanders is predicted by some to trounce Hillary Clinton, who should do better in upcoming votes in southern states."