MarketWatch First Take: Reacting to Yellen, traders may get to right place for wrong reason

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Federal Reserve Board Chairwoman Janet Yellen testifies before the House Financial Committee about the State of the economy on July 12, 2017 in Washington, DC. Yellen said the Federal Reserve expects to begin shrinking its $4.5 trillion bond stimulus later this year.

After prepared testimony and some three hours of quizzing, there’s one big question Federal Reserve Chairwoman Janet Yellen left unanswered, and it holds the possibility of undoing some of Wednesday’s big stock-market gains SPX, +0.81%

Yellen, in her statement in front of a House committee, issued a sentence that traders seized on: “Because the neutral rate is currently quite low by historical standards, the federal-funds rate would not have to rise all that much further to get to a neutral policy stance.

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