Today - Friday, August 22, 2014
- The major equity averages remain little-changed as do Treasury prices following the release of Janet Yellen's Jackson Hole address. Her talk sticks to the game plan - the first rate hike remains on tap for next year; the headline unemployment rate overstates labor market improvement; if employment or inflation picks up, hikes could come sooner than expected.
- SPY +0.1%, TLT +0.1%, TBT -0.2%
- Gold (NYSEARCA:GLD) remains as it was prior to the speech, +0.2% to $1,278 per ounce.
- The dollar (UUP +0.2%) creeps higher.
- Debate at the Fed is "naturally shifting" to when the central bank should begin to hike interest rates, says Janet Yellen in her speech at Jackson Hole, as the economy is getting closer to full employment and stable inflation.
- Nineteen labor market indicators tracked by the Fed suggest the decline in the headline unemployment rate overstates improvement in the labor market, she says. On the other hand, rate hikes could come sooner than expected should progress in employment pick up and/or inflation moves up at a speedier pace.
- "The Committee will be closely monitoring incoming information on the labor market and inflation in determining the appropriate stance of monetary policy."