Yellen Speech: Fed is prepared to adjust monetary policy as needed to get inflation back to 2%

Janet Yellen, Chairwoman of the Federal Reserve, continues to make comments on monetary policy, with key headlines, via Reuters, found below:

• Effects holding down inflation should be transitory
• Fed's understanding of forces driving inflation are not perfect
• I believe this year's shortfall in inflation reflects developments unrelated to broader conditions
• Fed is prepared to adjust monetary policy as needed to get inflation back to 2 pct

Key headlines:

CME Group FedWatch's December hike probability jumped above 70%

Following the release of the FOMC statement and the updated economic projections report, the probability of a 25 basis points rate hike in December jumped to 70.6% from 56% a day ago.

EUR/USD tumbles below 1.1950 after FOMC decision as USD soars

EUR/USD dropped below 1.1980 after the release of the FOMC statement. The greenback gain momentum across the board as US bond yields hit fresh daily highs. 

About Janet Yellen

Janet L. Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3, 2014, for a four-year term ending February 3, 2018. Dr. Yellen also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body.