Fed Chairwoman Janet Yellen will deliver her first semi-annual monetary policy report to Congress Speaking at the House on 11-Feb. We do not expect to hear much change in the Fed’s policy outlook. The economy is showing an improvement but the Fed is still missing on both goals (inflation below target and unemployment above target). She will note that the QE program worked and that the improvement in labour markets suggested that it could be phased out. While there is no pre-set course, the FOMC expects further measured reductions in asset purchases at subsequent meetings. We may hear her discuss the challenges of ... (full story)