But the equity markets like Yellen’s record as a dove meaning looser monetary policy and a possible delay in any tapering.
Alternatively, the market could be responding to a possible debt ceiling stall by House Republicans that President Obama approve of. But Yellen’s record as a dove (she was the architect of quantitative easing) is greeted with glee by Wall Street.
Here is a chart of Fed Asset Purchases and the S&P500 index. Yes, Wall Street will LOVE Janet Yellen!
Here is a chart of Fed Asset Purchases and the U6 unemployment rate and YoY CPI changes (as a proxy for inflation). It looks like inflation is falling slowly along with U6 unemployment rate. Very slowly.
Gold and silver prices are not so positive after QE3 was announced in 2012.
The worst chart of all: Real Median Household Income is running directly the opposite of The Fed expansion of their balance sheet. And we wonder why mortgage purchase applications are flat to falling?
Yes, Janet Yellen is a dove, so we can expect more of the same. Particularly if employment doesn’t speed up and real median household income continues to decline.
