Yellen Says Market Expectations Can Complement Fed’s Policy

Treasury Secretary Janet Yellen refrained from endorsing current expectations among traders for Federal Reserve interest-rate cuts, while saying that markets can sometimes complement policymakers’ actions.

“The markets anticipate future Fed moves based on their reading of incoming data,” Yellen told reporters between meetings with government officials in Mexico City on Wednesday. “That’s a healthy reaction in a way that — if markets are thoughtful when reading the data — can be helpful as a complement to monetary policy.”