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Yellen again stresses fiscal uncertainty

Fed Chair Janet Yellen at least kept the possibility of a March rate hike alive in today’s Congressional testimony, but she offered no strong hints that such a move was actually coming and we still think the FOMC will wait until June. According to Yellen, “at our upcoming meetings, the [FOMC] will evaluate whether employment and inflation are continuing to evolve in line with… expectations, in which case a further adjustment of the fed funds rate would likely be appropriate.”

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