Monday, April 4, 2016

Janet Yellen wants everyone to know she is in charge

Dr Yellen made it abundantly clear to the other members of the FOMC in her comments to the Economics Club of New York, that she is really the one in charge. She'd like to continue keep these relatively lower rates at least for a bit longer. She probably would not want to see the fed funds rate move more than 1 time this year. Others have argued it should rise 3 times as much, that was Dr Fisher. But she put her foot down. No, I'm more concerned about unemployment, employment rates, lack of inflation, problems of deflation, and I'm going to continue to keep the overnight fed funds rates lower than you'd like to be. 

So she just made it abundantly clear shes in charge and she will allow 1 or 2 people to dissent but there will not be any more dissents than that.

QE may well be back upon the table; monetary expansion is indeed upon the table. The dollar, in Yellen's opinion, has been far too strong and has been cast off from the table.