Yellen Strengthens the Case for a Rate Hike in December

The transcript discusses Janet Yellen's speech and its impact on rate hike expectations, focusing on the two-year yield and market probabilities. Yellen's speech at an academic conference emphasized future monetary policy tools but avoided medium to long-term policy outlooks. The transcript highlights market skepticism towards the Fed's intentions and the effectiveness of its tools, such as QE and forward guidance. It also stresses the importance of the upcoming jobs report and the timing of potential rate hikes, considering factors like the election and previous events like Brexit.

What factors contribute to market skepticism regarding the Federal Reserve's intentions?

Why is the upcoming jobs report considered crucial in the context of potential rate hikes?