Fed Chair Yellen expects gradual rate increases to be appropriate
Fed Chair Yellen expects gradual rate increases to be appropriate in her prepared JEC testimony. She sees the expansion deepening and widening, with further job market gains likely to increase wage growth. Vulnerabilities in the financial sector appear moderate. Meanwhile, she reiterated core inflation has remained "surprisingly subdued," though it likely reflects transitory elements. However, she also cautioned it could also reflect something more persistent. The remarks are consistent with her, and with the FOMC's general stance of late. Her testimony and Q&A later this morning (10 ET) will be monitored, but shouldn't have much market impact with Governor Powell likely to be confirmed as the new Fed chair.