A+
A–
Baku, August 26, AZERTAC
Financial markets have their attention firmly focused on Federal Reserve chief Janet Yellen, who is due to speak on Friday at the annual central bankers gathering in Jackson Hole, Wyoming, according to Euronews.
The dollar is set to jump or fall depending on what she will say about interest rates.
The Fed is widely expected to keep the cost of borrowing unchanged at its September policy meeting, but Yellen’s speech will be picked apart as investors around the world hunt for clues.
Specifically whether she and the other policymakers think the US economy is now resilient enough in terms of employment and inflation to cope with a rate increase by the end of the year.
On that score – unemployment claims unexpectedly fell last week, suggesting the US jobs market has continued to gain momentum. New orders for manufactured capital goods also rose for a second straight month in July, offering some signs of a recovery in business spending.
Watching Yellen’s speech particularly keenly will be Japan’s central bank governor Haruhiko Kuroda.
When US interest rates go up the dollar increases in value against the yen which helps Japan’s export-dependent economy.
Yellen herself knows that timing is everything after the Fed got into trouble raising rates a little too early last December – so the feeling in the financial world is she will leave her options open.
AZERTAG.AZ :Investors await Federal Reserve Chair Janet Yellen’s interest rate thoughts
