Capitol hill may have heard the last from Janet Yellen in terms of formal testimony, but her take on events was only one of several key pieces of monetary policy news this week. New faces, and new forces, will both be in play as we look ahead to the balance of this year and into 2018.
In terms of new forces, two key pieces of the puzzle were on display, both dovish in the near term. Yet another version of health care reform was trotted out, but prospects for its passage remained shaky at best. That stalemate puts the rest of Trump’s agenda on hold, including fiscal stimulus for 2018 that would have accelerated the pace of Fed hikes next year.