Janet Yellen

Fed monetary policy

Misreading the tea-leafs for the Fed’s rate hikes

Federal Reserve Chair Janet Yellen said the primary reason for raising interest rates in March was a simple one: the central bank is confident in a steadily improving economy. The economy, however, has actually been deteriorating somewhat for Fed’s rate hikes.

FEd's Chairwoman Janet Yellen

Trump Is A Waste Of Time, Janet Yellen Doesn´t Want To Waste Any Time

The Fed waited more than seven years to begin the rate hiking process. Maybe she´s worried about who Trump is going to put on Board and if she´ll be on Board next year. However, trying to go faster will probably make her lose the status of “most successful fed Chairperson” ever she´s beginning to amass.

FED edificioTC

Janet Yellen does not cave in to market pressure

Janet Yellen intends to hold firm against market pressure as her press conference showed yesterday. The 0.25% rise in federal funds was downgraded to a modest move, wholly anticipated by investors, while hinting at a moderate path in rate hikes over the next couple of years.

Yellen new

Post-Brexit, What Will Janet Yellen’s Next Excuse Be?

James Alexander via Historinhas | Market Monetarists must hope that Mark Carney doesn’t seek to defend the pound, but let currency weakness do it’s magic, monetarily offsetting any expected economic weakness. A drop in the pound is not like a drop in the price of a company after a profit warning that reflects a weaker future.

janet stanely

Well Done Janet, Well Done Stanley

James Alexander via Historinhas | Where are the John Maynard Keynes’ and Milton Friedman’s when you need them? The Fed, led by Janet Yellen and Stanley Fischer, has made a huge mistake in tightening monetary policy. The other members of the FOMC are largely irrelevant noise, with the possible exception of the NY Fed’s Dudley, though all carry blame.

janet unconvincing

Janet Yellen seems unconvincing

Janet Yellen’s delivery of a moderate rise in the Fed’s funds was bang in line with the market’s bets. She also conveyed a message of dovish commitment to thinking twice before engaging in any further monetary tightening. But despite her efforts to convince the markets that monetary policy will be back to business as usual, the cumbersome heritage of the liquidity glut will severely limit Yellen’s room for manoeuvre.

Investor focus on US Fed

The Fed Move May Send Shock Waves

Analysts and markets alike are already discounting a 25 basis points rise in the Fed’s core rates this week. So investors’ reaction will depend largely on Janet Yellen’s message regarding future rate hikes. A vague gradualism no longer matches the kind of unequivocal commitment the markets are waiting for. Anything short of this could fuel general volatility and unrest.