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00:00I WANT TO BRING IN ALICIA GARCIA HERRERO, LET ' S START OFF WITH YOU, ARE WE SEEING THE OLD JANET YELLEN? WHAT DID YOU MAKE OF THE COMMENTS? > > ON FIRST GLANCE IT DID SOUND MORE DOVISH FROM THE OVERALL FEEL OF IT, BUT OVERALL SHE DID CONFIRM WHAT WE KNOW ALREADY. THERE WAS NOT MUCH NEWS. INFLATION IS BELOW TARGET. SHE SEEMS TO BE CONFIDENT IT WILL RECOVER GOING FORWARD. WE ARE NOT SO SURE. I ' M NOT SO SURE, PERSONALLY. WE DO HAVE A TIMETABLE, WE DO KNOW IT IS UNLIKELY THEY WILL RAISE ANY WAY, ANOTHER TIME SINCE SEPTEMBER. WE DO HAVE A STRONG EARNINGS SEASON. AS FAR AS THAT GOES THE MARKET IS QUITE HAPPY FOR THEM. > > WERE MARKETS JUST MISINTERPRETING THAT STATEMENT? > > THAT IS THE ISSUE. THE FED -- IT IS MISSING THAT MANDATE. THAT IS IN THE FED DEFENSE, ONLY THE FED THAT IS MISSING IT. THAT IS WHAT MATTERS. THE OTHER THINGS ARE ISSUES THAT ARE NOT REALLY MONETARY POLICY. WHAT I AM TALKING ABOUT IS THE MACRO PICTURE. BELOW 2% INFLATION IS NOT THE END OF THE WORLD. IT IS LESS THAN PERFECT. SAYS WE DON ' T HAVE IMMINENT RATE HIKES, I WOULD LIKE TO SEE HER BEING PROVEN CORRECT IN THE NEXT FEW WEEKS. ALL OF THE CENTRAL BANKS, INFLATION COMING BACK INTO THE SYSTEM. FOR THE TIME BEING , YOU CAN ' T GO AGAINST THAT. > > WE ARE HOLDING OUR BREATH FOR THAT. IT IS INTERESTING, BECAUSE WE HAVE NOT SEEN INFLATION PICKUP, AND WE ARE ALL WAITING FOR THAT, YOU GET THE SENSE THAT THE FED IS GETTING LESS DATA DEPENDENT. > > I HOPE IT IS THAT. THIS CONCEPT OF TOO LONG, -- DATA DEPENDENCY. WE MOVED TO NOBODY IS GUIDING. I FEEL CENTRAL BANKS HAVE LOST THEIR MANDATE. THEY KEEP HAVING A SENSE OF WHAT THEY ARE DOING LATELY. YOU EXPECT BASICALLY THE SAME THING. > > DO YOU THINK THE MARKETS HAVE MISINTERPRETED YELLEN? DO THEY GET TOO EXCITED? > > LET ' S FACE IT, FOUR YEARS I WOULD ARGUE, I EXPECT THEM TO DO ITS JOB IN THE LEAST PAINFUL WAY . THAT IS NOT GOING TO BE POSSIBLE. EVERY TIME THEY FEEL THE NEED, THEY EXPLODE. IN PARTICULAR -- IT IS GOING TO

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LGT's Kumada Says Yellen Sounded More Dovish

Mikio Kumada, global strategist and executive director at LGT Capital Partners, and Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis, discuss Janet Yellen's testimony to Congress and what it may mean for markets. They speak on "Bloomberg Daybreak: Asia." (Source: Bloomberg)

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