Posted 12/6/2023, 9:30:00 PM
Yellen: Markets Can Complement Policy But Fed Will Act Regardless of Rate Cut Expectations
- Yellen did not endorse current market expectations for Fed rate cuts, but said markets can complement policy
- Markets are pricing in over 50% chance of a Fed rate cut in March and expect rates around 4% by end of 2024
- Yellen said healthy market reactions to data can be helpful alongside monetary policy
- But the Fed will take whatever action is appropriate regardless of markets
- Investors expect the Fed benchmark rate, currently between 5.25-5.5%, will fall to around 4% by end of 2024