U.S. stock index futures pointed to a higher open on Wednesday as traders digested prepared remarks from the top-ranking Federal Reserve official.
Federal Reserve Chair Janet Yellen said the central bank is likely to reduce stimulus later this year. The Fed accumulated its $4.5 trillion balance sheet as it sought to stimulate the economy during and after the financial crisis. The expansion came largely through the purchase of Treasurys and mortgage-backed securities.
She also said the balance sheet reduction and rate increases would be gradual. Yellen also noted rates won’t have to rise as much to get to neutral, as in previous decades.
Yellen will deliver her remarks in front of Congress later on Wednesday.
Source: Yahoo Finance