In a regular semi-annual appearance in Congress Fed chairman Janet Yellen reiterated that the US economy was getting stronger and that this might warrant a reduction of its balance sheet late this year.  She also ascribed low inflation, below their 2 per cent target, to temporary factors and said they were keeping a close eye on this.  But the real jolt came when she said, interest rates ‘would not have to rise all that much further to get to a neutral policy stance’.  A permanently lower water table, in other words.

Today in Brussels Chief EU Brexit negotiator Michel Barnier will meet for talks with Labour leader Jeremy Corbin, and heads of the devolved Welsh and Scottish governments Carwyn Jones and Nicola Sturgeon.