One of the most important events from a fixed income investor’s perspective this week was Janet Yellen’s testimony to the Senate Banking Committee on Thursday, where the Fed Chair talked about the outlook for the U.S. economy and monetary policy. Yellen reiterated the Fed’s stance made in Part I of the testimony on February 11 that the central bank intends to reduce asset purchases at a “measured” pace. But she said, “If there’s a significant change in the outlook, certainly we would be open to reconsidering.”
What were the major economic releases this week?
The Chicago Fed National Activity Index (or CFNAI) and the Texas Manufacturing Outlook Survey (or TMOS) by the Dallas Fed was issued on Monday, February 24. This was followed by the Federal Reserve Bank of Richmond’s Fifth District Survey of Manufacturing Activity and the Federal Housing Finance Agency’s Housing Price Index (or HPI) releases on Tuesday. New home sales data for the month of January was issued by U.S. Department of Commerce Census Bureau. The Kansas Fed’s Survey of Tenth District Manufacturers was released on Thursday.
The second estimate for the gross domestic product (or GDP) for the last quarter of 2013 and the Pending Home Sales Index were released today.
To read about Janet Yellen’s testimony to the Senate Banking Committee, move on to Part 2 of this series.