- The press conference got underway minutes ago, and the Fed Chair is reading her opening statement.
- Watch live here
- Economic growth appears to have rebounded, says Yellen, noting - among other things - stabilization in the labor force participation rate as signaling a stronger jobs market. Recent weak inflation readings (including this morning?) appear to have been driven by "one-off" items.
- The Fed expects to begin reducing its balance sheet this year. While the expectation is that the balance sheet is cut "appreciably" below the current level, it will remain above pre-crisis levels.
- So far no hint of dovishness from the Fed boss.
- She has not had any conversations with the president about her future (her term as Fed chair ends early next year); asked if she desires to stay on, she declines to answer.
- Returning to inflation, Yellen isn't buying the recent low readings, instead blaming them on "idiosyncratic" items, such as cell phone plans. "It’s important not to overreact to a few readings and data on inflation can be noisy."
- Fans will remember a decided dovish tilt to the economic projections and Yellen press conference three months ago. Not so today - Yellen is dismissive of anything that might suggest softness in the economy. Up nearly 1% earlier in the session, gold (NYSEARCA:GLD) has returned to about flat for the day. Down 11 basis points at one point today, the 10-year Treasury yield is now off 7 bps.
- Asked about the gap between market (dovish) and Fed (more hawkish) expectations, Yellen says that's not unhealthy.
- Addressing a question about potential new Trump Fed appointees, and their decidedly anti-regulatory tilt, Yellen says she does not believe regulations have played a big role in holding back the economy.
- Now read: Fed lifts rates by 25 basis points, details balance sheet unwinding plan
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