I think we can all agree that this has been a rough week across board. Forex has been leading the crazy train and I’m sensing quite a bit of whipsaw frustration in myself as well as other traders. Of course that is exactly when you have to be ready to jump on entry opportunities. For out of noise often emerges opportunity.
Oh man, it just piles up higher and higher.
If you can get past the photo that leads this story with your breakfast intact, you will be treated to…
“Asset purchases are not on a preset course,” Yellen told Congress , “and the committee’s decisions about their pace will remain contingent on its outlook for the labor market and inflation.”
Actually the Treasury bond market’s decisions about their pace will remain contingent on yields. (more…)
New Fed Chairgnome Yellen will be addressing Congress this morning, addressing the very serious problem of deflation at the Fed and detailing her plans for tackling it. As you can see from the image below this is a serious issue, which if not addressed may mean that financial policy may be determined by a leprechaun in the easily foreseeable future, and possibly even a gerbil a decade or two further down this path. A committee is looking into whether that would be likely to have a positive or negative impact on the quality of Fed policy. Deflation at the Fed since 1980: (more…)
So our new Fed chairwoman (so they say) Janet Yellen is scheduled for the Congressional hot seat this morning. Based on her track record the overall consensus is that she doesn’t intend to rock the boat, which probably means more of the same extended QE approach we have seen during the Bernanke years.
The saying goes that every new Fed Chair is tested (but good) upon taking the reins. In order for that test to come about, it seems that more often than not the previous Fed Chief will have been withdrawing at least some of the particular policy (Greenspan: Easy Fed Funds for Easy Al, Bernanke: Easy Fed Funds/ZIRP & QE bond buying) that had made them look like heroes to so many during their tenure. Here, have a look… (more…)