- Janet Yellen, Fed Chair
Fed Chair Janet Yellen insisted on a slower path and more cautious approach to interest rate hikes amid global economic and financial uncertainties, which pose risks to the world's number one economy. In her comments, Yellen said inflation has not yet proven durable against the backdrop of still low oil prices and concerns over China. However, Yellen expected headwinds from slowdown abroad, low oil prices and uncertainty over China to wane and allow the US economy to continue recovering and justify gradual series of rate hikes. Fed policy makers kept interest rates on hold at their March 15-16 meeting and sharply reduced their projected path of interest rate increases this year, foreseeing a total rise of half a percentage point, down from the full percentage point hike they expected in December.
Meanwhile, US consumer confidence recovered in March, as Americans turned positive about the short-term outlook for the US economy. The Conference Board's index of consumer confidence climbed to 96.2 in March from an upwardly revised 94.0 in the prior month. ADP private payrolls report later in the sessions is expected to show that 200,000 positions were added in March, compared with the 205,000 projected for the government's nonfarm payrolls Friday.
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