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The S&P, Bonds and oil prices are all up marginally after Fed Chair Janet Yellen testified on Capitol Hill about the Fed’s monetary policy and the current state of the US economy.  A few highlights include:

  • Inflation remains below the target range
  • Although consumer spending is up and employment looks better, growth remains sluggish
  • There is still room for economic improvement
Chair Yellen then elaborated on the use of the term “patience” in the minutes of the last FOMC meeting to mean that they could raise rates at any meeting, but not likely to occur in the next couple of meetings.

In economic news, the Case Shiller 20-city Home Price Index rose by 4.5% from December 2013 to December 2014, above the 4.3% expected.  The month over month median price rose by 0.9%, the largest since last spring.