Monetary tightening ahead in the United States?
On Friday at the Jackson Hole Economic Symposium, Federal Reserve Chair Janet Yellen gave an eagerly awaited speech and her remarks did not disappoint. Observers were surprised at the openness she showed regarding a potential tightening of U.S. monetary policy. Although Ms. Yellen made sure to temper her comments by reiterating that the Fed’s actions depend on economic data, the following sentence continues to make headlines:
“I believe the case for an increase in the federal funds rate has strengthened in recent months.”
The speech gave new life to U.S. bond yields and the greenback, which has been rising consistently since Friday.
This is the context we’re facing as we kick off a particularly busy week that will end with the always interesting U.S. job data. Moreover, Wednesday will bring us the Canadian June GDP reading. Feel free to contact us to talk about these topics! Have a great day!
