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The press conference's Q&A enabled reporters to tackle Yellen on the matter. When confronted with the fact that market pricing for interest rate is lower than the consensus of Fed members, Yellen said that each Fed member has a "considerable band of uncertainty" around his forecast. When questioned by what extent is the monetary policy driven by financial stability, Yellen said that she does not see stability as an important factor in shaping monetary policy at the moment. Reporters kept pushing the inflated asset bubble premise, as they suggested that the S&P 500 is at a record high. Yellen replied that she “does not see valuations outside of historical norms for equity prices broadly". Ultimately, Yellen was asked if there would be a considerable period between the end of the bond purchases and the first hike of the federal funds rate and specifically, whether March's six-month assessment is still good. To this, Yellen concluded with an undeceive response that there is "no mechanical formula whatsoever for what a considerable time means".
Evidently, the perception that everything is relative seems to be very valid in financial markets nowadays. It is easy to see why an additional 10 billion dollars tapering can be a step backwards.
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