As you know, last week the Federal Open Market Committee (FOMC) changed its forward guidance pertaining to the federal funds rate. This is how Yellen began her speech to a research conference sponsored by the Federal Reserve Bank of San Francisco on March 27. With continued improvement in economic conditions, an increase in the target range for that rate may well be warranted later this year. The speech titled Normalizing Monetary Policy: Prospects and Perspectives, was primarily used as a way to provide talking points around the Fed's change in forward guidance. An Aggressive Change In Forward Guidance In Yellen's previous statement it seemed the FOMC was looking for improvements in 1) the labor market and 2) consumer confidence before raising rates. Specific data points and thresholds were also provided like a drop in the unemployment rate from 5.0 to 5.2 percent. This was the initial requirement for an increase… Read More …