Yellen’s future still hangs in the balance - ING

Chair Yellen’s future is likely to come up in the press briefing of upcoming Fed meet, especially after Vice-Chair Fischer's earlier-than-scheduled resignation announcement, suggests Viraj Patel, Foreign Exchange Strategist at ING.

Key Quotes

“We think uncertainty over the Fed's future leadership, as well as the broader policy framework, maybe keeping front-end US rates flat - with investors sceptical about making wholesale changes to Fed policy assumptions, until there is greater clarity.”

“The most market-friendly outcome at this stage is if Chair Yellen stays on beyond her term scheduled to expire in February 2018 - even if it is a temporary arrangement.”