(Bloomberg View) -- Markets had a predictable immediate reaction to comments by Federal Reserve Chairwoman Janet Yellen on Tuesday that they interpreted as relatively dovish signals about the thinking of the world’s most important central bank.

Within minutes of her remarks, risk assets rose, government bond yields fell, the dollar weakened and the VIX declined. Sustaining this trend will require two policy signals, one short-term and one longer-term -- assuming that the global economic environment remains relatively stable.

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