Goldman's Yellen Post-Mortem: A Snoozer

Tyler Durden's picture

Today, Jan Hatzius was almost as fast as Jon Hilsenrath. Below is his Yellen post-mortem. Well, of her speech that is.

BOTTOM LINE: Fed Chair Yellen's prepared remarks for her semiannual monetary policy testimony before the House Financial Services Committee were brief and did not contain any major surprises. The testimony itself will begin at 10:00am.

 

MAIN POINTS:

 

1. Yellen's remarks highlighted the cumulative progress made in the labor market recovery, but also noted that "recovery in the labor market is far from complete" and that it is important to "consider more than the unemployment rate when evaluating the condition of the U.S. labor market." These remarks suggest that Yellen views the labor market as having ample remaining slack.

 

2. She stated that inflation should move back towards 2% over coming years, and that some of the recent softness reflects factors that "seem likely to prove transitory, including falling prices for crude oil and declines in non-oil import prices."

 

3. Yellen indicated that as long as incoming information is broadly consistent with the Committee's expectations, it will likely reduce the pace of asset purchases in further measured steps at future meetings, although purchases are not on a preset course. She also reiterated that the 6.5% threshold is not an automatic trigger for higher rates, as Fed officials have often emphasized in the past.

 

4. With regard to recent developments, Yellen did not explicitly address the soft patch in US economic data since the start of the year, but did state that recent volatility in global financial markets did not seem to pose a substantial risk to the U.S. economic outlook "at this stage

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Divided States of America's picture

Female Bernank, Lets see this bitch stammer/stutter cluelessly. Markets will sell off after this gong show.

WarHorse's picture

Why was Granny testifying in front of congress?

 

Hard to take her seriously with that voice and appearance

Theta_Burn's picture

Sorry I missed it, and more important, did Maxine Waters prove her worth?

Temporalist's picture

Fuck that retard.  No offense to retards.

DaddyO's picture

In my way of thinking, retarded denotes some biologic aspect of low IQ or cognition.

Maxine Waters intentionally displays her arrogance and ignorance of and to the world around her.

DaddyO

Dr. Engali's picture

It's easy for John to get his thoughts out, after all the squid supplied old Yeller with her talking points.

fonzannoon's picture

If this does not prove we have had this backwards all along I don't know what does. It turns out when the banks finally go down, we won't be able to get out of the vault, not in.

"People do love to complain about their banks’ customer service, but here’s a new one: A woman says she stopped by her bank and ended up locked inside after the staff forgot her in a side room and closed up for the day.

It’s the type of story custom-made for the British tabloid The Mirror, which shuffled the story to its “Weird News” section. According to the paper, the anonymous customer popped into a Natwest branch in central London just before closing time Monday, stepped into a quiet room to call customer service, and stepped back out to find that she was alone and trapped."

mijev's picture

It shouldn't even even be labeled a snoozer. It's totally irrelevant to anything. Suckers like ZH procreate this farce by reporting irrelevant non-reporters' accounts of irrelevant non-news. If ZH were to stop writing anything about the Fed then maybe we could move forward. Maybe the rest of the MSM would follow suit. ZH and commenters (like me) are our own worst enemies. Who gives a fat, hairy, flying-fuck what either the Fed or some non-entity cunt sycophant, non-reporter of non-news says? Please, let's all cease and desist and maybe they'll all go away.

mijev's picture

Of course, maybe someone could mention yield curves or a "head and shoulders" pattern or some other meaningless drivel. That would really complete the farce.