Fed discussed slowing growth abroad, including the fallout from Russia Fed discussed slowing growth abroad, including the fallout from Russia as the ruble has depreciated enormously. But she noted that the spillovers to U.S. from Russia are likely to be small. Europe is more exposed to Russian events than the U.S. is. The FOMC will continue to monitor, though, as movements in oil prices can be large and unexpected. Leverage in the financial system is now way down compared to pre-crisis levels.
Yellen said "patience" meand no rate moves over the next couple of meetings Yellen said "patience" meand no rate moves over the next couple of meetings. But in another breath she added that "every meeting is live" for policy action. There were wide ranging views on rate hikes she confirmed. The Fed is "attentive" to global market developments. And the very substantial drop in oil prices is shaping the global outlook. Cheaper energy prices is like a tax cut to U.S. consumers and is a positive for the economy. There is also a downward effect on price pressures, but Yellen reiterated the slid in oil prices should be transitory.
Yellen says rate hike could occur sooner than now anticipated The Fed Chair said it's "unlikely" that a rate hike will occur in the first two meetings of the year. She said a number of FOMC members believe that a rate hike could occur in the middle of 2015.
Yellen says FOMC members differ on interest rate hike timeline FOMC members have different views on when in 2015 the Fed should increase interest rates, Yellen said. Members want to see further improvement in the labor market before interest rates increase, she added.