Wednesday, May 5, 2021

Yellen Moonwalks: "I Did Not Predict Nor Recommend Interest Rates Hikes"

Treasury Secretary Janet Yellen on Tuesday morning during a virtual economic seminar presented by The Atlantic said that interest rates may have to rise to keep a lid on what she called "burgeoning growth" (read: price inflation) brought on in part by trillions of dollars in government spending.

“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat,” Yellen said. “Even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates."

Following the remarks, technology and other growth stocks headed south, coming under pressure after a run that has pushed major indexes to repeated records.

The Nasdaq Composite Index dropped 261.61 points, or 1.9%, to 13633.50. Apple dropped -3.54% Facebook was down-1.31% and Alphabet dropped-1.71%.

 The S&P 500 slid 28 points, or 0.7%, to 4164.66. The Dow Jones Industrial Average eked out a slight increase after trading lower for most of the session, up 19.80 points, or 0.1%, to 34133.03.

But perhaps speaking truth and warning about the developing price inflation was a Joe Biden moment brain slip slapped out of Yellen, the moment the zoon feed was cut, by the aides that surround her. Later in the day, Yellen moonwalked her morning comments back.

At a separate virtual conference  the "Wall Street Journals CEO Council Summit," she said “I don’t think there’s going to be an inflationary problem, but if there is, the Fed can be counted on to address it.” 

A rise in interest rates “is not something that I am predicting or recommending.”

In other words, the entirely irresponsible reckless money pump shall continue and Yellen is back in line.



  1. just shows you how fast they back track when even a remotely slightly sane idea comes out.

  2. What is better for gold/silver prices? A tightening or status quo?