More from Yellen: not much new in her Q&A, reiterating the two sided risks
More from Yellen: not much new in her Q&A, reiterating the two sided risks. She did seem to lean more toward the hawkish side, but only modestly so as gradualism was stressed. She also noted that the Fed's inflation goal is symmetric and that the 2% level is not a ceiling. It would not be a tragedy to see inflation overshoot, she said. On the impact of the balance sheet unwind on rates, she said the asset purchases lowered term premia by about 100 bps, but that doesn't mean the unwind will boost rates by 100 bps, especially since the balance sheet will almost surely end up larger than where it was prior to the financial crisis. The path of rate hikes may not be as predictable as the balance sheet unwind. Indeed, she emphasized the rate path is subject to a great deal of uncertainty and is not on a pre-set course.