Yellen credit

Earlier today, Janet Yellen was asked about bank credit and it got some attention as she said:

"I've not really seen evidence at this stage suggesting a contraction in credit, though that it a possibility."

She went on to tout how strong the banking system is.

I wouldn't take this as a sign that she has better data than everyone else, she is notoriously slow-to-move until the data is clear so she would wait for the top tier data to make any proclamations.

That said, some in the market have taken this as good news and it's reasonable to suggest that credit conditions haven't changed much for many banks. The comments were likely behind some of the positive moves in the US dollar today.