Goldman Sachs Said Yellen's Monetary Policy Speech 'Not Expected To Be A Market Mover'

Goldman Sachs issued a preview of Fed Chair Janet Yellen's semi-annual monetary policy testimony. The message isn't expected to deviate much from the January FOMC statement. Analysts are expecting her to acknowledge the recent strong labor market data and the outlook on inflation.

Goldman Sachs gave six issues to focus on in the speech:

• 1. Has the Fed shifted its view on whether rate hikes will occur with core inflation lowering to 1.3 percent?
• 2. How much does the Fed emphasize wage growth? In the past, it has placed significance on wages as a measure of inflation.
• 3. Is the Fed concerned about the less than stellar retail sales data in light of the fall in oil prices?
• 4. Are increases in the federal funds rate expected to increase slowly or is it more data dependent?
• 5. What is the Fed's view on balance sheet policy?
• 6. Has the plan for exit shifted?
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