Fed Chair Yellen Boosts Dollar with Jackson Hole Labor

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Fed Chair Janet Yellen kicked off the Kansas City Federal Reserve’s Jackson Hole Economic Symposium with an opening speech today. Her talk was entitled, “Labor Market Dynamics and Monetary Policy” and it highlighted the Fed’s considerable uncertainty about the U.S. labor market.

In her speech, Yellen said that, “As the recovery progresses, assessments of the degree of remaining slack in the labor market need to become more nuanced because of considerable uncertainty about the level of employment consistent with the Federal Reserve’s dual mandate.”

She went on to observe that the FOMC’s 2012 statement regarding its long term goals and monetary policy strategy “explicitly recognized that factors determining maximum employment ‘may change over time and may not be directly measurable,’ and that assessments of the level of maximum employment ‘are necessarily uncertain and subject to revision.’”

The U.S. Dollar traded with increased volatility against the other major currencies during her speech, with the Greenback eventually strengthening significantly once it ended. The Dollar Index (DXY) was trading up 0.32% to 82.4150 shortly after her speech concluded.

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Jay Hawk of Orbex enjoyed a twelve year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Jay Hawk personally leased seats and traded as a specialist market-maker with a broker/dealer license on major U.S. trading floors. He also ran stock and options broking desks with hundreds of retail and professional accounts, and I actively managed trading portfolios for private clients as large as $30 million both on and off the trading floors. In addition, Jay started a professional options stock exchange brokerage to provide brokerage services on to floor market-makers and upstairs traders located in New York and Chicago. Jay also gave option seminars as both a consultant and educator and helped start the exchange traded currency options market.

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