Yellen to start preparations for removal of “patience”

Yellen's semi-annual testimony to Congress will undoubtedly be the highlight of the economic calendar this week. Societe Generale research team notes:

• With another month to go to the crucial March FOMC meeting, we expect the Chair to keep her cards close to her chest. 
• However, those anticipating a very dovish testimony may be surprised and we expect Yellen to stick to the official FOMC guidance which is still for a mid-year liftoff in rates. 
• She will, however, reiterate that the removal of the "patient" language does not constitute a commitment to lift rates on any predetermined date.