Watch Live: Hawkish Yellen Says Fed May Have Misjudged Inflation, Labor Market

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies

Update: In her prepared remarks, Yellen crucially said,
‘A more important issue from a policy standpoint is that some key assumptions underlying the baseline outlook could be wrong in ways that imply that inflation will remain low for longer than currently projected.’
As Bloomberg explains, she is stating a bit more clearly than before that the FOMC doesn’t have a handle on why inflation is low and acknowledging that it may last longer than they predict.
As we detailed earlier, on the heels of Bostic (“we didn’t blow any bubbles”) Brainard (“some barriers to growth are structural”) this morning and Kashkari (“no inflation”), Evans (“need more data”), and Dudley (“inflation’s coming soon”) yesterday; it is Fed Chair Janet Yellen’s turn to speak this afternoon on “Inflation, Uncertainty and Monetary Policy” as the dollar extends its post-FOMC gains (to 1-month highs).

This post was published at Zero Hedge on Sep 26, 2017.