Foley: Yellen Doesn't Want Huge Dollar Rally

The transcript discusses market expectations for Fed rate hikes and their impact on the dollar and asset prices. It compares the current situation to 2014, highlighting the Fed's cautious approach to avoid a significant dollar rally. The role of yield differentials and market divergence is examined, along with correlations in the foreign exchange market. The analysis also covers yen movements and the influence of Fed policy on market trends.

What are the implications of yield differentials on the foreign exchange market according to the speaker?

In what ways could the Fed's tone influence the direction of the dollar?