Federal Reserve Chair Janet Yellen's brain appeared to freeze up last week at the University of Massachusetts, Amherst, as she gave a speech on monetary policy,
What is now most fascinating to me about this brain malfunction is the precise point at which the Yeleln brain crash occurred, Keep in mind this was an hour long speech and the topic was Inflation Dynamics and Monetary Policy. She talked much theory and history during the speech, but her brain went on the fritz at the exact point when she discussed current Fed policy and why an interest rate hike was necessary in the very near future.
Pam and Russ Martens, of Wall Street on Parade, identify the time of the brain crash:
What Fed Chair Yellen is talking about just prior to her difficulties is enough to make anyone dizzy or provoke an anxiety attack. Yellen says:
“…continuing to hold short-term interest rates near zero well after real activity has returned to normal and headwinds have faded could encourage excessive leverage and other forms of inappropriate risk-taking that might undermine financial stability. For these reasons, the more prudent strategy is to begin tightening in a timely fashion and at a gradual pace, adjusting policy as needed in light of incoming data.”
I continue to hold the view that Yellen can't handle the pressure. She is completely unsure of how monetary policy should go. She is deeply concerned that a hike in interest rates might cause a crash (very unlikely), but also fears hiking rates too late could be a disaster. Whatever she does, some are likely to consider it a big mistake.
I will be very surprised if she serves out her entire term. which is scheduled to end on February 3, 2018.