Fed takes an even more dovish stance on monetary policy

The US Federal Reserve expects to be more cautious about raising its cash rate this year, Janet Yellen announced in a speech on Tuesday . Although the Federal Reserve’s December rate hike was trumpeted as a precursor to as many as four further rate increases planned for 2016, the Fed’s increasingly dovish stance reaffirms that fewer hikes are on the cards this year and, in turn, raises the chance of an earlier rate cut here in New Zealand.