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US TSYS SUMMARY

Decent Action on Narrow Range Ahead Wed's FOMC

EURJPY TECHS

Corrective Cycle Still In Play

USDJPY TECHS

Approaching Recent Highs

     WASHINGTON (MNI) - The following is a response of Federal Reserve Chairman
Janet Yellen to a question from a reporter at her press conference following
Wednesday's Federal Open Market Committee meeting.
     
Question:
     The fed said inflation should be transitory, are you confident that will
still be the case particularly regarding wage gains, they have been moderate in
recent months. Yet the economy is growing and confidence is high. Is there
something going on in the economy that is making it difficult for businesses to
raise wages? 
     
Yellen:
     It is true that incoming wage data suggests only modest upward pressure on
wages. That leads me, that's one factor along with the fact that inflation
remains low with feeling that even though we have a 4.1 percent unemployment
rate, that the labor market is not overheated at this point. Remember the modest
pace of wage gains also probably reflects slow productivity growth. 
     But when you ask me about the outlook for inflation, I've talked in detail
about this in the past, and recognize that there is uncertainty about what's
holding inflation down, but my colleagues and I continue to believe that the
factors that are responsible this year for holding inflation down are likely to
prove transitory. That said, we all agree that our inflation objective is
extremely important. 
     We recognize that there's been a prolonged shortfall. This is a symmetric 2
percent inflation objective, and we continue to indicate that we will be
monitoring inflation developments closely. So this is on the horizon, and
recognized to be one of the risks facing policy.
--MNI Washington Bureau; +1 202-371-2121; email: holly.stokes@marketnews.com
[TOPICS: MMUFE$,M$U$$$]