Yellen starts her testimony before the Senate Banking Committee at 10:00 a.m.
Andre Bakhos said that The market is pricing in good times ahead
but the question is whether the administration is going to be able to deliver on the promises made,
(Reuters) - U. S. stocks were little changed on Tuesday, with the "Trump rally" pausing ahead of a testimony by Federal Reserve Chair Janet Yellen
that will be scrutinized for clues on the timing of the next interest rate hike.
Richmond Fed President Jeffrey Lacker said the central bank will likely have to raise rates more rapidly than the markets currently expect given
that any new policies by the Trump administration, while uncertain, will force the Fed’s hand.
While President Donald Trump’s pro-business stance sparked a record-setting rally in equities, he has given
scant detail on his policies, giving the Fed limited visibility on the direction of the economy.
Currently, traders have priced in a mere 17 percent chance of a rate move in March, despite
a spate of strong economic data including a robust labor market and improving inflation.