What you need to know before the open – 12/02 February 12, 2014 Janet Yellen’s dovish comments yesterday left markets upbeat. Today, European markets await the Bank of England’s inflation report. ETX Capital #MorningCall FTSE +16, DAX +40, CAC +13, IBEX +52, SP +1, DOW -8 — ETX Capital (@ETXCapital) February 12, 2014 The crucial question is whether governor Mark Carney quietly does away with the [...]
Dovish Yellen lifts markets February 11, 2014 NEW FEDERAL Reserve chair Janet Yellen buoyed markets yesterday, insisting that the US jobs recovery is “far from complete” – even as the Fed tapers quantitive easing (QE) by $10bn (£6.07bn) each month. The Fed previously said it would not consider raising interest rates until unemployment dropped below 6.5 per cent, but Yellen’s comments strongly [...]
New York Report: Debt deal sees stocks get a lift February 11, 2014 WALL STREET rose for a fourth straight session yesterday as Congress agreed to advance legislation extending US borrowing authority and the Federal Reserve’s new chief held off from making any changes to its schedule for trimming stimulus. Republican leaders in the US House of Representatives caved in to demands by President Barack Obama and agreed [...]
One US politician just asked the Fed’s Yellen an impossible question February 11, 2014 Janet Yellen just got a question that no-one can truthfully answer. When representative Gregory Meeks asked Yellen to "identify the jobs" of the future, so that America can train workers accordingly, he was asking the impossible. While Meeks spoke of how mechanisation has eliminated some positions, he was only able to do so with the [...]
Fed chair Yellen answers the big jobs question February 11, 2014 It's the question everyone's asking. Is present unemployment a result of cyclical or structural factors? The Fed chair said that cylical factors have played the biggest role in the employment rise. BTIG's chief global strategist Dan Greenahaus says that this insight "really matters", as it suggests that the Fed can and should keep pushing ahead. [...]
Yellen says this traditional monetary policy rule doesn’t work under current conditions February 11, 2014 Fed chair Janet Yellen has said that the Taylor Rule – a monetary policy rule that compares inflation and actual GDP with potential GDP – doesn't work under current conditions. Yellen noted in answer to financial services committee chairman Jeb Hensarling that the Taylor Rule would have prescribed negative interest rates. That meant that other [...]
Janet Yellen just endorsed this new measure of the economy in all but name February 11, 2014 Move aside headline unemployment, this Fed chair has a new favourite. In her written testimony Federal Reserve chair Janet Yellen said that "the number of people who are working part time but would prefer a full-time job remains very high." That's an almost explicit mention of "U6" – one of the Bureau of Labor Statistics' [...]
Yellen shows Carney how to wriggle out of forward guidance like a pro February 11, 2014 (@GeneralBoles) Bank of England governor Mark Carney must be one of the world’s luckiest central bankers – as he began his job, the stagnant UK economy suddenly kicked off, and inflation returned to two per cent after spending five years above target. And when he does come up against a major challenge, another central banker [...]
What you need to know before the US open – 11/02 February 11, 2014 Markets will open half an hour before questions from the House are put to the chair of the Fed, Janet Yellen. US futures are widely unchanged on the news, with the S&P 500 expected up 0.1 per cent at open. The Yellen Reaction: Stocks Down, Gold Down, Bonds Frown http://t.co/U6nR5jn7ga — zerohedge (@zerohedge) February [...]
New Fed chair Yellen says labour market recovery is “far from complete” February 11, 2014 It's Janet Yellen's first big test. The new Fed chair's written testimony was widely expected to show that she'd be leading the central bank in a more dovish direction. Yellen has said that the FOMC will continue to taper QE in measured steps, buit that there is no preset course – it's contingent on jobs, [...]