Posted on 07/01/2015 4:57:07 AM PDT by expat_panama
...Federal Reserve chair told the Senate Banking Committee on Tuesday the central bank is in no hurry to raise interest rates. Yellen once again stressed the word "patience." On Wednesday, she appears before the House of Representatives' Financial Services Committee.
Yellen talked about a solid and improving economy but also about disappointing labor force participation and anemic wage growth. She said it would be several months before the Fed would boost rates. Stocks soared on the news with both the S&P 500 and Dow closing at record highs. The Nasdaq also saw healthy gains and is now less than 1% away from the 5,000 milestone.
But The Wall Street Journal's Pedro da Costa called Yellen’s testimony "hawkish" because, he says, Yellen “seemed fairly willing to leave the idea of a June interest rate hike on the table which many in the market had not been expecting.”
“In a sense, the market’s reaction is surprising,” da Costa told Yahoo Finance in the accompanying video. “Market reactions are often erratic. They can turn around quickly,” he said.
While the Fed clearly wants to see more improvement in the economy and signs of higher inflation, Yellen did give a sort of road map to an initial rate hike and any hike that follows. That means a move away from forward guidance. The Fed will now look at data each meeting and decide from there what to do with interest rates. The Federal Reserve has not raised rates since 2006.
“It’s more normal in a sense,” says da Costa. “The last time the Fed raised interest rates, they used an expression that said they would continue to raise rates at a measured pace and that was taken to mean a quarter point per meeting," he says, "And the Fed wants to be less predictable...
(Excerpt) Read more at finance.yahoo.com ...
Hey everyone, happy mid week and mid year all at the same time! While metals stayed solid stocks rebounded a tad yesterday and futures are now calling for more of the same: metals +0.68% and stock indexes +0.96%!!! On top of all that we get a document dump:
7:00 AM MBA Mortgage Index
7:30 AM Challenger Job Cuts
8:15 AM ADP Employment Change
10:00 AM ISM Index
10:00 AM Construction Spending
10:30 AM Crude Inventories
5:00 PM Auto Sales
5:00 PM Truck Sales
Well, we all know the Fed can’t raise interest rates.
How much more predictable do you need?
everyone should know its all a shell game fabrication when the market has to parse every pause and ‘uh’ looking for clues from a clueless yellen,
I have no doubt Yellen is part of the team put together to destroy America on due time. Like her dear leader, she and her minions will unleash a hellish surprise on the nation.
Because zero is so unpredictable.
We will see.
That was my thinking too. This piece has got a lot of holes in it and I can't wait to find out what she really said.
Before I get out my tin-foil hat, we need to get clear that America's never been nearly as fragile and easy to destroy as some think. Historically people who doubted America's strength came to regret their doubts...
Agreed. I will be delighted to be wrong, as a spiritual awakening can turn a nation around.
Hopefully, that will happen. If not, history is pretty clear on the results of a society that celebrates perversion, infanticide, and the worship of the state.
Great. Take your pick:
Predictable unelected bureaucrats w/ enormous power.
Unpredictable unelected bureaucrats w/ enormous power.
It doesn’t matter to the ants on the anthill who steps on them.
Absolutely true, and we see hear much of this around us. The more I look into it though the more I'm finding that it's not the majority I'm hearing, it's only the noisy ones. The big problem is that for some reason the sane majority gave control to the perverted noisy minority. This wouldn't be the first time that an otherwise good people turned things over to a pack of nice sounding loony-toons.
Until fiscal policy changes, things will just slowly chug along. Robertscare (nee Democratcare) is a huge drag on employment, then toss in minimum wage hikes, regulations and the ‘new’ overtime rules and robots suddenly look like a great alternative.
OK!! If ever the combined wisdom of all the financial savants assembled here on FR is needed, it is now, today!!
Tell us!!! What should we do? Buy? Sell? Hold?
We must know!!!
Absolutely!!! BUY, SELL, HOLD -—immediately!!!!!
That is a very fine, scary, point you make, and everyone needs to understand what it means -
“the Fed CAN’T raise interest rates”
because if they raise them anywhere above 0,
there’s a near instant crash.
Sell in August.
Everything.
If only more people could understand that. In the meantime we got too many people blaming everything on Yellen even though the Fed has nothing to do with fiscal policy.
Until the Dimocrats unionize them.
Moves are afoot to bestow rights on chimps, dolphins, pets so smart robots must be considered as well.
They are probably already marrying them in Japan.
IMO the stock market has de-coupled from the US economy.
Yellen is looking for inflation in a deflationary depression. Keep trying Janet. :-)
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