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No Worries Wednesday – Dammit Janet, We Love You!

Posted on the 12 February 2014 by Phil's Stock World @philstockworld

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…

No Worries Wednesday – Dammit Janet, We 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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