22.08.201415:51:00UTC+00Yellen’s Speech Did Not Reflect the more Hawkish Tone of the July Fomc Minutes

Quotes from Nordea Bank:

- In a much-anticipated speech in Jackson Hole the Fed Chair Yellen repeated the balanced discussion of the monetary policy outlook expressed in her congressional testimony in July. Yellen's comments made clear that she isn't ready to start raising rates.

- Going forward, all eyes will remain on inflation data and especially wage data as this well certainly set the stage for how fast the Fed will normalise policy. Until Yellen sees clear evidence of higher wage increases, she will likely remain content with normalising policy slowly.

- We continue to believe that the Fed is underestimating inflation risks. Thus we still expect the Fed to turn more hawkish later this year and that markets will start pricing in more rate increases from the Fed as the economy continues to strengthen and the geopolitical concerns fade.