FED: Yellen’s mon-policy testimony essentially repeats her Friday speech — US
econ is better (but there’s still some slack in labor mkts) and has good
prospects. First hike is coming likely this yr, but decision is on a
meeting-by-meeting basis. Street is too focused on initial Fed step, expected
path matters more and will be gradual – key is policy will remain accommodative
for some time. Uncertainties incl Greece & China; US$ headwind should diminish.
The formal testimony is completely in line with expectations, should not move
mkts. Yellen also veers into how Fed is transparent and accountable, perhaps an
attempt to head off some criticism. The testimony will be read to the Committee
after 10am, and Q&A should begin some time after 10:30am ET, moving ‘event risk’
far out into late-morning in NY time.