Fed chair Janet Yellen's speech - Analysts react

"Fed Chair Yellen's Testimony does not close the door to a March rate hike, given that the meeting is still more than a month away, but if the committee loses its nerve in the face of continued market volatility, no-one will be able to say they are surprised. [...]

"The March decision will depend on the labor market data, which in all likelihood will signal the need for higher rates, and a host of market developments and non-labor data, which likely will not. We're sticking to our 55/45 call in favor of a March hike, but it will be close either way." - Ian Sheperdson, chief economist, Pantheon Macroeconomics

"Fed Chair Janet Yellen’s written testimony to Congress today reveals that, while the FOMC might not be ready to raise rates a second time in March, it still anticipates a “gradual” series of rate hikes over the next couple of years. That view is clearly at odds with futures markets, which imply that almost any additional rate hikes are now off the table." Paul Ashworth, chief US economist, Capital Economics

"In her prepared remarks, which were already released at 8:30 am, she struck a rather sanguine tone on the economy. That implies that Ms. Yellen has not adjusted her baseline scenario for both the economic and the policy outlook, even as uncertainties have increased. The biggest risks to her are that persistently tighter financial conditions and intensifying global headwinds could weigh on the outlook for economic activity and the labor market." - Dr.Harm Bandholz, chief US economist, UniCredit Research

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