Janet Yellen's latest speech put caution above the future upward path of interest rates. Coupled with the most recent FOMC 'dot plot' release, they are timely reminders of just what a cat and mouse game central bankers and investors indulge in.
Until very recently, the game seemed to have been put on hold as investors and the Federal Reserve fundamentally disagreed on the future path of interest rates. The mouse (the market) has been taking little notice of the cat (the Fed). However after the recent surprise announcement from the Federal Open Market Committee (FOMC), that may be about to change.
The most transparent communication tool the FOMC has – the "dot plot" of anonymous interest rate projections by the individual committee members – showed a big downward revision to median projections for this year and further ahead.