Yellen May Try to Sound Like a Hawk in Her Press Conference

Fed may want market to still think there’s chance of two hikes this year

by Greg Robb
Market Watch

Fed Chairwoman Janet Yellen may sound hawkish to sensitive market ears at her press conference on Wednesday because she is likely to make the case that the U.S. central bank can still raise rates twice this year even with the weak May employment report, analysts said.

“Yellen presents the views of the whole [Fed] policy committee and the whole committee wants to retain the optionality of two rate hikes” in 2016, said Omair Sharif, senior U.S. economist at Societe Generale.

Like she did earlier this month in the immediate aftermath of the May payroll report, Yellen will stress the positive, saying that it still looks like there will be a rebound in second-quarter GDP growth.

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