February 11, 2014

I’ve always been interested about how the markets react when the Fed makes an announcement.  Or when jobs numbers get released.  So, I decided to watch what happens when Yellen talks.  She’s new—just one week as the Federal Reserve Chair—so this is a great opportunity to watch it from the start.  And to learn from it.  So starting today I am going to watch.  Which is a good thing, because she is expected to be making her first big announcement later on today.  According to a Time article:


Federal Reserve Chair Janet Yellen is expected to say Tuesday that the nation’s central bank will continue to scale back its bond-buying program that has stimulated the economy for years, as long as economic growth keeps continuing.


In her first public testimony as Fed chair, Yellen will say she expects “a great deal of continuity” with the policy course charted by recently-departed Fed chair Ben Bernanke, according to her prepared remarks. “I served on the committee as we formulated our current policy strategy and I strongly support that strategy,” Yellen will tell the hearing of the House Financial Services Committee.


So, what does that mean?  What will the markets do?  Well, according to my friends on the street here is what they are hearing…



Now, let’s see what the markets do after she makes her announcement.  More to come.

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