In the Fed's chicken, bond tapering, or egg, interest rates, question, Yellen left reporters with the idea it would unwind the stimulus program, famously known all these long months as QE, and deal with interest rates later.
Here's a quote from one source.
At the same time, the Fed lowered its forecast for “longer run” interest rates to 3.75% from closer to 4%. This last change is important because it signals the central bank won’t push up interest rates all that high during this recovery phase.
The central bank’s policy statement that was nearly identical to the previous one issued in April. Only its description of the economy was changed — and in a way to make it more upbeat.
What we like about this quote is it's faith that the Fed "won't push up rates all that high during the recovery phase." Not unless the market does it for them.
In English grammar one learns about so-called declarative sentences, subject, verb, object. Few could put it better summarizing the fledgling Fed chief than Business Insider's Joe Weisenthal when he wrote: "Janet Yellen is a dove."
You can judge the market's reaction to this earth-rocking news. It rallied.
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