Farm Progress

The remarks and written testimony by Federal Reserve Chairman Janet Yellen to congressional committees created market uncertainty>

Bobby Coats, Professor

February 20, 2017

1 Min Read
Bobby Coats and Bert Greenwalt, agricultural economists with the University of Arkansas and Arkansas State University, catch up at the Agricultural Council of Arkansas annual meeting in Little Rock.

Fed Chairwoman Janet Yellen’s Semiannual Monetary Policy Report to Congress and verbal guidance indicating less monetary accommodation or a possible move to raise interest rates before their June 13-14, 2017 Federal Open Market Committee (FOMC) meeting, has heightened uncertainty in the commodity markets.

Commodity markets went from having a bullish bias to a more subdued bias as market participants considered potential actions by the Federal Reserve Board, which Dr. Yellen chairs. A more hawkish Fed could cause a more bullish dollar coupled with a rise in interest rates with the overall impact being potentially negative to commodity prices, export markets, and business profitability.   

To read Chairman Yellen’s remarks, visit Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, Washington, D.C. on February 14, 2017, and Chair Yellen submitted identical remarks to the Committee on Financial Services, U.S. House of Representatives, on February 15, 2017.

Her written testimony may be view by clicking on the following: Semiannual Monetary Policy Report to the Congress

See also Bloomberg’s Jeanna Smialek article “Fischer Echoes Yellen Seeing Economy on Fed's Rate Hike Path,” February 16, 2017 says.

 

About the Author(s)

Bobby Coats

Professor, Department of Agricultural Economics and Agribusiness, University of Arkansas System, Division of Agriculture, Cooperative Extension Service

Bobby Coats is a professor in the Department of Agricultural Economics and Agribusiness, University of Arkansas System, Division of Agriculture, Cooperative Extension Service.

E-mail: [email protected].

 

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