Fed Chair Yellen: economic indicators have been mixed

Fed Chair Janet Yellen said during her speech on Wednesday that she aimed at a rate hike in the future. However, this decision would not happen automatically: the Fed would monitor a situation in the US economy and react correspondingly to the incoming data.

It is necessary for the Fed to be careful with the implementation of one or another steps, especially how taking into account how the interest rate is close to a zero level. However, unexpected weak data on nonfarm payrolls has levelled of the expectation, which has been approved at the meeting.

Janet Yellen underlined that there was no reason to focus only on that report. The reasons of that data were still unknown. She also warned that the monetary policy did not follow a right algorithm: a normalisation would occur only when the economic conditions corresponded to expectations.

Fed members announce their forecast on a number of rate hikes. However, Fed Chair stated that they had not discussed the number of rate hikes at closed meetings because each decision had been discussed within a concrete meeting.