#AceFinanceNews New Federal Reserve chief Janet Yellen is expected to stick to the game plan when she chairs her first monetary policy meeting this week, further cutting back economic stimulus.
But, six weeks after inheriting Ben Bernanke’s mantle, she is also under the gun to make a pivot in the way the Fed has been signalling its intentions.
Handled well, that delicate shift in how the Fed foreshadows an eventual rate hike could assuage markets. But communicated badly, it could result in volatile movements and leave the new Fed chief on the back foot.
The first meeting under Yellen’s lead of the Federal Open Market Committee, on Tuesday and Wednesday, is expected to conclude that unusually harsh winter storms were mainly behind the slowdown in economic activity in December to February.