Yellen Speech: Shortfall of inflation this year is more of a mystery

Janet Yellen, Chairwoman of the Federal Reserve, is responding to questions from the press, with key headlines, via Reuters, found below:

• Balance sheet will decline gradually and predictably
• Inflation running below 2 percent for a long time is a concern
• Shortfall of inflation this year is more of a mystery
• We anticipate that core and headline inflation will move up to our target of 2% next year
• FOMC does not fully understand causes of weak inflation

Key headlines:

CME Group FedWatch's December hike probability jumped above 70%

Following the release of the FOMC statement and the updated economic projections report, the probability of a 25 basis points rate hike in December jumped to 70.6% from 56% a day ago.

EUR/USD tumbles below 1.1950 after FOMC decision as USD soars

EUR/USD dropped below 1.1980 after the release of the FOMC statement. The greenback gain momentum across the board as US bond yields hit fresh daily highs. 

About Janet Yellen

Janet L. Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3, 2014, for a four-year term ending February 3, 2018. Dr. Yellen also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body.