US: Looking for policy clues in Yellen and Fischer speeches - SocGen

Analysts at Societe Generale explain that today’s focus will be on the addresses of Vice Chair Fischer and Chair Yellen, against the backdrop of increased market-based odds of a March rate hike.

Key Quotes

“Late Tuesday afternoon, regional Fed presidents Dudley, thought to be part of the “core” of the FOMC along with Yellen, and Williams both spoke and sounded like they were very much on board with a March hike. That sharply raised market-based odds of a March hike to around 70% from 50% the prior day. Although we continue to maintain our call for a June hike, admittedly the odds are shifting in favor of March. Both Dudley and Williams sounded hawkish, but at this juncture, we will wait to hear from Vice Chair Fischer and Chair Yellen on Friday before making any formal changes to our call.”