Wednesday, December 2, 2015

Yellen, in back-to-back appearances, could close out era of zero rates

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At this point business cycle, it would be wise to ignore the Fed for the message of the market. The economy which the majority generally lacks the skill to anticipate, is already decelerating. Economic Activity Composite (EAC) suggests its only a matter of time before lagging, highly revised, and more widely-followed (headline grabbing) economic data define an economic contraction. If Fed policy (and economic expectations stemming from it) are based solely of the stability of employment and prices trends, get ready for an unexpected flip flop in 2016. This will not only shatter the illusion that the Fed 'controls' everything. Yellen, whom inherited the Fed's quandary from Bernanke, should consider early retirement.

Headline: Yellen, in back-to-back appearances, could close out era of zero rates

Federal Reserve Chair Janet Yellen could cement the case for a U.S. interest rate hike ahead of the Fed's Dec. 15-16 policy meeting, with public appearances over the next two days at a high-profile economics group and before a joint committee of Congress.

When Yellen takes the stage at the Economic Club of Washington shortly after noon on Wednesday, she will do so with market expectations already aligned behind a December hike, and the flow of economic data since the Fed's last meeting offering no clear reason to hold back.


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