Toni dovish, from dove, arrives from Paris from the governor of the Federal Reserve, Janet Yellen. During a conference at the Banque de France entitled 'Central Banking: The Way Forward?', the head of the US central bank explained that a supportive monetary policy 'remains necessary' given the slow and unbalanced economic recovery. The first woman to lead the Fed in its 100-year history promised transparency in communicating her intentions but warned that normalizing monetary policy 'could lead to increased volatility' in financial markets.
In his speech there is no reference to today's employment report. While the Fed's monetary policy arm eliminated any reference to fiscal policies as a drag on the economy at its October meeting, that doesn't mean that the Fed itself is satisfied with the way the country is spending. 'In advanced economies, the current macroeconomic policy mix generally remains one of the extraordinary monetary stimulus measures' but 'considering the headwinds that continue to weigh on growth, employment and prices, the situation is far from ideal', Yellen said.
