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Yellen more likely to lean dovish

Fed's view amid shifting data

Fed Chair Janet Yellen has some explaining to do.

Yellen speaks Tuesday in a much anticipated midday appearance before the Economic Club of New York — just days after several Fed officials surprised markets by saying a rate hike could be coming soon. The problem is that the U.S. central bank on March 16 released a post-meeting statement that markets viewed as dovish, and most Fed watchers see June as the first time it would consider raising rates.

"This is the dark side of transparency. People talk and the market thinks the Fed is going to tell us, that the Fed is all-knowing and clear," said Deutsche Bank's chief U.S. economist, Joseph LaVorgna. "And what we're finding is transparency doesn't make the market any more comfortable or confident in what the Fed is going to do. ... The Fed has wrong-footed the market consistently."