Yellen Update

The Federal Reserve needs to continue gradual rate hikes despite broad uncertainty about the path of inflation, Fed Chair Janet Yellen said on Tuesday in remarks that acknowledged the central bank's struggles to forecast one of its key policy objectives.

It is possible, Yellen said, that the Fed may have "misspecified" its models for inflation, and "misjudged" key facts like the underlying strength of the labor market and whether inflation expectations are as stable as they seem, and central bankers need to remain open to that possibility as they decide on policy.

/ES ends leaving a bearish profile below CLVN-LIS 2497. Buyers need to remain above 2493.50 and push through 2497 towards GAP 2505. If sellers break 2493.50 we could see major selling towards 2489-85-80.