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Yellen the Lightweight July 31, 2014

Posted by hslu in Economics, Global Affair.
Tags: ,

If you happened to hear Grandma Yellen’s news conference last time after Fed’s FOMC meeting a couple of monts ago, you know she’s a light weight lamb among the Inflation wolfs.

Her answers gave the audiences the feeling that everything is peachy and there is nothing to worry about. Economy is humming along even though it barely moved above inflation. She also insisted that inflation is nothing to worry about because the Fed is on top of everything. She’s the one who will provide forward guidance to lead the bond and stock markets all over.the worl. She is the one who will calm the financial market when things may go wrong. Rate increase is months away. Taper will do the trick now. She is on top of everything and there is nothing you need to worry about.

She is also data depedent. She just can’t tell you anything without this morning’s data.

Here was what she said when someone asked her if she’s confident on the economy: “Well when you say confident I suppose the answer is no, because there’s uncertainty.”

Hmm…, give me a break.

I’ll cut her some slack because she’s new. But I just don’t trust her with the stock market and my retirent funds.

I’ll be watching you.



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