The river was deep but I swam it, Janet
The future is ours so let's plan it, Janet
If there's one fool for you then I am it, Janet
Now I've one thing to say and that's
Dammit, Janet, I love you…
The markets are loving our fiesty new Fed Chairwoman!
And why shouldn't they? Like the Joker in that first Batman movie - she's giving away free money – what could possibly go wrong? For almost 6 hours yesterday, Janet yellen testified before Congress and essentially said it would take an EXTREME change is circumstances for her Fed to take the foot off the economic gas pedal:
"Let me emphasize," she said, "I expect a great deal of continuity in the [Fed's] approach to monetary policy. I served on the committee as we formulated our current policy strategy and I strongly support that strategy."
Ms. Yellen was the Fed's Vice Chairwoman for more than three years before being sworn in last week as its new leader. From the #2 spot she pushed aggressively for the Fed to adopt easy-money policies, including the third round of bond buying launched at the end of 2012, to encourage borrowing, spending, investment and hiring. Her comments left little doubt that her plan - as was Bernanke's – is to tiptoe away from those policies only gradually as the economy improves.
IN PROGRESS
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