The 5 indicators that matter to Janet Yellen

Bloomberg: "Federal Reserve Chair Janet Yellen spelled out on Tuesday what she means by data dependence, asserting her leadership of the U.S. central bank with a clear message that interest rates will be raised at a cautious pace. In one of her most detailed policy discussions this year, Yellen gave investors a list of conditions they need to watch for future rate hikes. Here they are: 1) Foreign economies and their financial markets need to stabilize. 2) The dollar can’t appreciate further. That would depress inflation and exports, and hurt U.S. manufacturing. 3) Commodity prices need to stabilize to help foreign producers find a better footing for growth. 4) The housing sector needs to make a larger contribution to U.S. output. 5) Inflation is a two-sided risk: Yellen is skeptical that the recent rise in core inflation, which strips out food and energy, “will prove durable.” She is watching closely." Full article: (VIEW LINK)