Yellen, 71, made clear in her speech on Friday that she believes tighter regulations and standards have made the banking system safer and that while some improvements could be made, they should be modest, not structural.
The dollar fell sharply against the euro after Yellen, appearing at an annual summit of central bankers in Jackson Hole, Wyoming, avoided monetary policy in remarks that defended tougher regulations on banks.
It could be Yellen's final appearance at Jackson Hole as the Fed chair because her term expires in February 2018. Meanwhile, Yellen's potential replacement, Gary Cohn, gave an interview to the Financial Times, saying he's willing to try to make tax reform a bipartisan effort. Cohn might not have helped his chances Friday as he publicly criticized Trump's response to the violence in Charlottesville, Va.
Gold had almost surpassed its threshold of $1,300/oz. on Friday, when a sudden one-minute trade operation of large volumes of the metal sent prices cascading - just ahead of Fed Chair Janet Yellen's speech.
"There is more work to do", she told the audience.
US Secretary of the Treasury Steven Mnuchin said the US debt ceiling, a hurdle to be crossed before any tax reform can take place, will be raised next month and that after talks with congressional leaders from both parties everyone is "on the same page".
"Yellen's decision to defend core regulations will strengthen the hand of those within the administration who do not favour her reappointment", Krishna Guha, vice-chairman of Evercore ISI, said in a note to clients.
"I would bet that [Trump] renominates her", said Timothy Anderson, managing director at TJM Investments. But Cohn told the Financial Times that he chose to stay on in the administration because he did not want to be forced out by neo-Nazis.
While some observers say Trump still could reappoint Yellen in 2018 due to the perceived chaos in his administration and the standoff with and within Congress, such a reappointment is deemed unlikely from the policy viewpoint. The euro hit a high of $1.1940, its strongest level since January 2015. Cohn said he ultimately chose not to leave because of the duty he feels to his job. "We must all unite together against them".
Celebs React to Mayweather Defeating McGregor!
"I didn't want to give the fans a boring fight". "I would have liked the ref to let me keep going", McGregor said afterwards. The highly anticipated match between Conor McGregor and Floyd Mayweather has ended with Floyd Mayweather emerging victorious.
Philippe Coutinho may force his way out of Liverpool
The 35-year-old was on £367,000-a-week last season, but will earn around half that amount over the next 12 months. We took the solution - we had the solution. "We convinced all the players we spoke to (to join Liverpool )".
Celtics do not believe Isaiah Thomas will be cleared by Cavs
Citing sources , Wojnarowski reported the Cavaliers "could threaten to veto the trade" if the Celtics don't meet their demands. The clincher, though, is the 2018 first round pick, which has the potential to turn into a rising star in next year's draft.
Trump defends his Charlottesville response
Trump said, "I think there is blame on both sides " for the violence and that there were " very fine people " on both sides . And he didn't cross it by pointing out that some of the counter-protesters turned up looking for a fight (because they did).
Hugely powerful Hurricane Harvey slams Texas
The volunteer fire department in Rockport is not expected to begin any damage assessment until after all rescues are completed. But even a downgraded storm could leave a lasting impact on the Texas economy and America's energy industry.
Add alligators to list of dangers Texans face during Harvey
Central pressure of 938 millibars makes it the 6 lowest central pressure for any land falling hurricane in the U.S. since 1851. On Saturday afternoon, Rockport officials said that one person was dead in the town that was especially hard hit by the storm.