Wednesday, February 15, 2017

US Equities Higher On Yellen Speech

Fed Chair Janet Yellen made a statement yesterday that FED policy makers don't need to wait on Trump's tax cuts in order to raise rates. She also made the announcement that there would be three raise rates this year, the first could be expected in March.

The speech gave the markets a wake up call as bonds sold off and US equities rallied to new highs.Dow Jones reached 20,535 and the S&P reached 2,338.

The hawkish attitude towards the market could be regarded as concerning to the risk management in infrastructure spending, tax reduction and Trump's policy implementations.

Yellen will be questioned today on House Committee.

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