Yellen is back! Or should I say “Yellenator” is baaaaaaaaaaaaaaacccckkkk!!
The chatter continued through the summer…”Summers or Yellen“?? Back and forth like a tennis match. Yet Summers bowed out and gave the new queen of “injection” Yellen the official role. Janet Yellen Bio is impressive and will become the first female to lead the Federal Reserve Board. Although the markets tried to create new candidates…even the infamous “Geithner increase your cap limit ECB” was mentioned? Could we imagine that?
Yellenator was the only choice…she consults with Bernhamlet on his FOMC meeting minutes & FOMC Statement….how could she not be the chosen one? She is the “status quo” for Wall ST…the “fat cats” will continue to see the equity markets inflate as all “hail rise to Yellenator”.
Bullion markets have loved Bernhamlet ..can the Yellenator provide the same boost?? Yellen will be challenged yet she will keep the “ship afloat” for how long? While the US continues to play their “Hollywood epic” to the world, the world is looking to other alternatives and will the USD be tagged with an SDR? Overall, markets are pro “stimulus” regardless of “taper” talks…there will be no “Octaper” ..”Decaper” or even “Janaper.
If we do see tapering…expect the return of huge stimulus in the future. The US cannot operate their military machine nor pay their bills and risk default, US debt limit will increase and all will remain “status quo”. As well the Federal Reserve Balance Sheet needs to continue to increase their bond purchases. Who else will buy these “toxic assets” leftover from 2008. How will this play out….2014 or maybe 2015 alot of changes expected for our world financial system.
FOMC Decision commentary today could cause a shake in the markets….
Bernanke speech today once again is the “rockstar” event in today’s commentary via the FOMC Meeting minutes. Traders and investors agree that the same FOMC Projections speech will be presented..i.e. monitoring employment figures..housing market is improving…..with a similar theme. The usual Bernanke Press Conference follows Federal Open Market Committee…yet Bernanke is able to “tame” the markets with Bernanke News.
The Fed continues to be the “main card” in the world ‘deck of cards’. Markets are awaiting FOMC announcement statement providing positive injection via the FED further “bond purchases” in the coming months. As well, Yellen and Summers if they are the selected candidates for Obama….they could be the ‘saviours’ to the market??
If Yellen is selected, she will be “status quo” and accepted for her “Bernhamlet stance ..”put the pedal to the metal”.
All the chatter about “tapering” is truly a buildup to failure. The Fed has no other option but to continue it’s purchases…truly…which economy wants to inherit the 2008 toxic assets via the housing crash?? US economic monetary policy will remain a question by numerous BRICS nations and other world economies.
Overall, the FOMC Statement provides the best “drama” in the financial markets. If an academy award is provided for the “best suspense”…”leading actor”…the Fed would win ‘hands down’. Hollywood has a slew of epic stories available …since 2008 to present 2013 pick your theme. How long can this continue?? Notch another ‘check mark’ in your book for the next headline in the FOMC Meeting Calendar.
Since last week, market speculation via traders, analysts, economists..even U.S. senators are all speculating about possible Bernanke replacement.
Truly..does it matter????
The issue at hand is not, whether it should be a male instead of a female ( Janet Yellen) to represent the Fed as some are indicating that Summers was the main reason for the creation of the “Financial crash in 2008”. The topic should be…will the newly appointed “Fed Chairman” if it happens..implement a “new solution” instead of the “stimulus injection” process that is causing a future “debt bubble burst”.
We all know that the FED’s ‘cards are displayed’ via Bernanke Press Conference after FOMC commentary & the infamous Bernanke Speech followed after, there is no other option but to just continue with the ‘digital printing’. In fact, Japan, U.K. and the ECB has continued this process. The FED has been a major influence for other central banks to continue this option. A new direction is required and if the U.S. is considering to take the ‘lead’ they will need to provide confidence to investors and the markets that they ‘can control their current bubble’. Also, can the USD remain the reserve currency if the situation has not changed??
The question is….will that be the FED’s agenda..or continue with ‘status quo’.