Always keep an eye out for comments from San Francisco Fed President Janet Yellen. She never rocks the boat and always tows the line. If you want to really know what Bernanke is thinking, Yellen will channel his thoughts.
This morning she spoke at an Asian banking conference in San Francisco and said that:
While there have been glimmers of hope that strains in our markets may be easing, conditions are still not normal...
Translation: The Fed is in no hurry to battle inflation and raise rates aggressively.
How about her speech yesterday? Bloomberg: On the power to sell debt, “I would feel happier having it now” so the Fed could use that authority to adjust its balance sheet, Yellen told reporters today after a speech in New York. Even without that tool, “there is a great deal we can do,” she said, “but it would certainly be a nice thing to have.”
ReplyDeleteI guess it's official now.
Thanks, No Axe,
ReplyDeleteI am taking this to the top.
Yellen speaks again and says the Fed is talking to Congress about the Fed issuing its own debt. Also, she says she is pleased with the Treasury's PPIP program.
ReplyDeletehttp://www.marketwatch.com/news/story/feds-yellen-says-timing-economic/story.aspx?guid={B601CC14-9AB6-45B9-AC25-3931B3BC7713}&print=true&dist=printMidSection