USA stocks traded near intraday highs on Tuesday after Federal Reserve Chairwoman Janet Yellen concluded her testimony before the Senate Banking Committee, signaling the central bank could gradually raise interest rates sooner than later.
Appearing before the Senate Banking Committee, Fed Chair Janet Yellen said "waiting too long" to hike rates "would be unwise".
"Changes in fiscal policy or other economic policies could potentially affect the economic outlook", she said.
Among the strongest signs of USA economic health, Yellen pointed to strides in the labor market, which gained on average 190,000 per month in the second half of 2016, and improvement in the unemployment rate, which was 4.8 percent in January.
Financial markets specialist Professor James Angel from Georgetown University explained why: "Often politicians will want central banks to do things that are short term expedient, but long term risky for the economy".
The US Fed's policy-setting Federal Open Market Committee (FOMC) raised rates in December for only the second time in a decade, but kept rates steady in January.
Fed Chair Janet Yellen has ascended Capitol Hill today for the first of two days of testimony in front of Congressionally leaders, colloquially known as the Humphrey-Hawkins testimony. During the financial crisis, the Fed purchased large-scale assets to hold down long-term interest rates.
In its meeting in February, the Federal Reserve choose to leave its key interest rate unchanged, though it suggested that the environment for rate increases is improving and measures of consumer and business sentiment continue to strengthen. US stock indexes opened slightly lower Tuesday morning after breaching record highs on Monday.
With at least three vacancies expected on the Federal Reserve's Board of Governors this year, the central bank may not be exempt from a Trump-led shakeup, strategist Mark Grant told CNBC on Monday.
The greenback was initially under pressure following the resignation of President Donald Trump's national security adviser, Michael Flynn, over revelations he had discussed US sanctions against Moscow with the Russian ambassador to the United States before Trump took office.
Over the weekend Fed Vice Chair Stanley Fischer said there was significant uncertainty about U.S. fiscal policy under the Trump administration, but that the Fed would be strict in meeting targets of creating full employment and getting inflation to 2 percent, according to Reuters.
Other officials have been more direct.
Market reaction was swift, with government bond yields climbing on the news, signaling that traders thought a Fed hike was coming in the near term.
Sen. Warren also prompted Yellen to comment on an assertion by top Trump economic advisor Gary Cohn, and former Goldman Sachs top banker, that banks, as a result of Dodd-Frank, have been forced to hold larger reserves that can not be leant to borrowers.
Yellen also said she agrees with the principles laid out by Trump's recent executive order on how the US financial system should be regulated.
Still, she added: "We're confident the economy is on a solid course and we have some ability to address weakness by cutting the federal funds rate, if needed".
On Tuesday Warren also sent letters to the White House, Department of Labor and Financial Services Roundtable to ask what role, if any, banking industry lobbyists had played in the development and drafting of Trump's recent executive orders on financial regulation. USA regulators are not required to implement global standards, but rather choose to do so because they think they are appropriate, he said.
Yellen was appearing in Congress for the first time since Republicans took control of the White House and both houses of the legislature and she nodded to the uncertainties over the direction of US economic policy.
At the end of 2014, roughly 55 producers in eight countries held fair trade certification for flowers and plants, Marron said. But lots of other flowers are good for Valentine's Day too, like orchids. "The guys usually are the ones who (buy) flowers".
She said she's has been opposing Planned Parenthood for about 30 years."This is about protecting the most innocent among us". "Defunding Planned Parenthood is not about stripping health care from women, but protecting our most basic right".
President, we are at a critical juncture with regard to North Korea and its provocative behavior", Gardner wrote. A fully developed ICBM could threaten the continental United States , which is about 9,000km from North Korea.
According to state media, Gambia's government has notified the United Nations of its intention to remain in the ICC. Mr Jammeh took The Gambia out of the Commonwealth in 2013, calling it a neo-colonial institution.
The Oakville, Ontario-based company's total revenue rose about 5 per cent to $1.11-billion and was almost in line with estimates. The company expects to open the first locations in some of those markets this year, said chief financial officer Josh Kobza.
Police didn't offer much information about a description of the suspect, other than it was a male between 16 and 19 years old. The department posted a photo on Facebook Thursday showing the mother being presented with the check.
Heavy contingents of police and security forces have been deployed in the region to prevent massive public protests. At least two terrorists were killed in the encounter which broke out in Jammu and Kashmir's Kulgam this morning.
He revealed some of the terrorist attacks that the press hadn't written about. 'It is real , ' Spicer says. Spicer didn't immediately respond to a request for comment on his portrayal. "Duh, 'that isn't real ".
You can share your favorite spots across different social networks, popular messaging apps, email, and via text messages. For example, if you plan a museum trip in a new city you're visiting, you can add them all to a "Museums" to visit list.
Monday's Google Doodle is an effort to educate people about pangolins and how they range from vulnerable to critically endangered. As you go through the game, you'll have to pick up different items to rack up points, and earn as many stars as possible.
There are many different kinds of cheaters, from serial cheaters to those who watch shows while their partner is out of town. So what shows are people cheating with? And, 58 percent don't consider it cheating if their partner is sleeping.
Speed a possible factor in Taiwan bus crash that killed 32
At least 32 people were killed and more were taken to hospital after a tour bus crashed on a highway in Taiwan on Tuesday night. Pictures from the scene of the crash show the bus lying on its side with rescuers checking over the site for survivors.
Massive Cheese Recall In Progress Due To Listeria
The Sara Lee recall involves 734 cases of cheese distributed in Alabama, California, Louisiana, Michigan, Pennsylvania, and Texas. A supplier notified Sargento that a Longhorn Colby cheese that supplied may contain a form of Listeria .
Silver, Jordan help cool down Oakley-Dolan feud
After Oakley's arrest, Dolan suggested Oakley might have an alcohol problem, which the former Knicks forward denied. Oakley was arrested and charged with three misdemeanor counts of assault and one misdemeanor count of trespassing.
The search for life: NASA to deploy robotic probe to Europa
Now, the space agency has detailed - in a Science Definition Team (SDT) report - a mission to send a lander to the icy moon. Then, they will collect data which will help them in the preparation for an actual landing on the icy moon of Jupiter.
China consumer inflation quickens to 2.5% in January
The minerals segment, however, saw the rate of inflation almost doubling in January to 25.4% from 12.9% in December. The WPI for January'17 is significantly higher than the WPI of (-) 1.07% for the corresponding month past year .
Ed Sheeran to perform at Grammys
If you're a cord cutter, this is a good investment anyway to make it easier to watch things like sporting events and award shows. Michael Jackson and Santana hold the male record for most GRAMMYs won in one night; Adele and Beyonce on the female side.
Holly Holm chasing 'biggest high of your life' at UFC 208
Her takedown game isn't great, but it's better than De Randamie's, so she could eat up some time with attempts and top control. Justino, for the second time in her pro MMA career, tested positive for (and admitted to the use of) a banned substance.