Weekly Comic: Markets Digest Yellen’s Hawkish Tone and Trump Tax Plan

Published 28/09/2017, 10:47 pm

Investing.com - Market sentiment this week was dictated by hawkish rhetoric from Federal Reserve Chair Janet Yellen as well as the release of U.S. President Donald Trump's long-awaited tax reform plan.

The dollar and Treasury yields spiked higher after Yellen said Tuesday that the Fed needs to continue gradual rate hikes despite broad uncertainty about the path of inflation.

Yellen's hawkish tone boosted odds for a December rate hike to about 80%, according to Investing.com's Fed Rate Monitor Tool, up from under 40% just a few weeks ago.

Meanwhile, a highly-anticipated plan to reform taxes in the U.S. was released by Republicans on Wednesday.

The framework proposed bringing the corporate tax rate to 20% from 35% and reducing the highest individual income tax rate to 35% from 39.6%.

Investors stateside cheered the tax reform plans. Despite market optimism, the proposal still faces an uphill battle in Congress, with the Republican party divided over it and Democrats hostile.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

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