Six months ago, the Fed forecasted four interest-rate hikes this year. Now the financial markets see one rate hike over the next two years. Most economists think that Yellen is in the dovish rather than the centrist camp. Rob Martin, a former Fed staffer who now works at Barclays, thinks Yellen had been in the centrist camp but floated to the dovish camp just before the June meeting.
“I see her a little bit more to the center, maybe not dead center,” Kathy Bostjancic, Head of U.S. Macro Investor Services at Oxford Economics, said. “But she’s closer to the center than to those who want the Fed to remain on hold another year and are fearful of the global economy crumbling,” she said.