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Janet Yellen's First Monetary Policy Speech - Live Feed

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Markets will be hanging on every word of what is likely Janet Yellen's first monetary policy speech and even more so the Q&A afterwards as she suggests that a considerable time is more than 6 months, and the delicate balance she has to play between admitting the economy is ugly while admitting that QE is over no matter what... all the while maintaining some semblance of credibility. One has to wonder if the ripfest rally of the last 24 hours is a buy the rumor ramp ahead of a sell the Yellen news event as once again she is tested...

The 3 key factors will be:

  • her jobs (economy) dashboard - just what does she look for and how does she use them...?
  • her view of inflation - transitory dip, weather? or rip she's afraid of...?
  • Financial stability - nope, no bubbles here...?

Headlines:

  • *YELLEN SAYS FED COMMITTED TO ACCOMMODATION TO SUPPORT RECOVERY
  • *YELLEN SAYS NEW GUIDANCE RELIES ON `WIDE RANGE OF INFORMATION'
  • *YELLEN SAYS CHANGE IN GUIDANCE DIDN’T MEAN ALTERED POLICY PATH
  • *YELLEN: POLICY NEEDS TO REACT TO ECONOMY'S `TWISTS AND TURNS'
  • *YELLEN: WEATHER CAUSED `SIGNIFICANT PART' OF RECENT SOFTNESS
  • *YELLEN: QUITE PLAUSABLE FED HITS JOBS, INFLATION GOALS END-2016

 

 

Janet Yellen is speaking at The Economic Club of New York:

Live Feed:

 

 

 

(click image below for Bloomberg feed)

 

Full prepared remarks...

Monetary Policy and the Economic Recovery

Nearly five years into the expansion that began after the financial crisis and the Great Recession, the recovery has come a long way. More than 8 million jobs have been added to nonfarm payrolls since 2009, almost the same number lost as a result of the recession. Led by a resurgent auto industry, manufacturing output has also nearly returned to its pre-recession peak. While the housing market still has far to go, it seems to have turned a corner.

It is a sign of how far the economy has come that a return to full employment is, for the first time since the crisis, in the medium-term outlooks of many forecasters. It is a reminder of how far we have to go, however, that this long-awaited outcome is projected to be more than two years away.

Today I will discuss how my colleagues on the Federal Open Market Committee (FOMC) and I view the state of the economy and how this view is likely to shape our efforts to promote a return to maximum employment in a context of price stability. I will start with the FOMC's outlook, which foresees a gradual return over the next two to three years of economic conditions consistent with its mandate.

While monetary policy discussions naturally begin with a baseline outlook, the path of the economy is uncertain, and effective policy must respond to significant unexpected twists and turns the economy may take. My primary focus today will be on how the FOMC's monetary policy framework has evolved to best support the recovery through those twists and turns, and what this framework is likely to imply as the recovery progresses.

The Current Economic Outlook
The FOMC's current outlook for continued, moderate growth is little changed from last fall. In recent months, some indicators have been notably weak, requiring us to judge whether the data are signaling a material change in the outlook. The unusually harsh winter weather in much of the nation has complicated this judgment, but my FOMC colleagues and I generally believe that a significant part of the recent softness was weather related.

The continued improvement in labor market conditions has been important in this judgment. The unemployment rate, at 6.7 percent, has fallen three-tenths of 1 percentage point since late last year. Broader measures of unemployment that include workers marginally attached to the labor force and those working part time for economic reasons have fallen a bit more than the headline unemployment rate, and labor force participation, which had been falling, has ticked up this year.

Inflation, as measured by the price index for personal consumption expenditures, has slowed from an annual rate of about 2-1/2 percent in early 2012 to less than 1 percent in February of this year.1 This rate is well below the Committee's 2 percent longer-run objective. Many advanced economies are observing a similar softness in inflation.

To some extent, the low rate of inflation seems due to influences that are likely to be temporary, including a deceleration in consumer energy prices and outright declines in core import prices in recent quarters. Longer-run inflation expectations have remained remarkably steady, however. We anticipate that, as the effects of transitory factors subside and as labor market gains continue, inflation will gradually move back toward 2 percent.

In sum, the central tendency of FOMC participant projections for the unemployment rate at the end of 2016 is 5.2 to 5.6 percent, and for inflation the central tendency is 1.7 to 2 percent.2 If this forecast was to become reality, the economy would be approaching what my colleagues and I view as maximum employment and price stability for the first time in nearly a decade. I find this baseline outlook quite plausible.

Of course, if the economy obediently followed our forecasts, the job of central bankers would be a lot easier and their speeches would be a lot shorter. Alas, the economy is often not so compliant, so I will ask your indulgence for a few more minutes.

Three Big Questions for the FOMC
Because the course of the economy is uncertain, monetary policymakers need to carefully watch for signs that it is diverging from the baseline outlook and then respond in a systematic way. Let me turn first to monitoring and discuss three questions I believe are likely to loom large in the FOMC's ongoing assessment of where we are on the path back to maximum employment and price stability.

Is there still significant slack in the labor market?
The first question concerns the extent of slack in the labor market. One of the FOMC's objectives is to promote a return to maximum employment, but exactly what conditions are consistent with maximum employment can be difficult to assess. Thus far in the recovery and to this day, there is little question that the economy has remained far from maximum employment, so measurement difficulties were not our focus. But as the attainment of our maximum employment goal draws nearer, it will be necessary for the FOMC to form a more nuanced judgment about when the recovery of the labor market will be materially complete. As the FOMC's statement on longer-term goals and policy strategy emphasizes, these judgments are inherently uncertain and must be based on a wide range of indicators.3

I will refer to the shortfall in employment relative to its mandate-consistent level as labor market slack, and there are a number of different indicators of this slack. Probably the best single indicator is the unemployment rate. At 6.7 percent, it is now slightly more than 1 percentage point above the 5.2 to 5.6 percent central tendency of the Committee's projections for the longer-run normal unemployment rate. This shortfall remains significant, and in our baseline outlook, it will take more than two years to close.4

Other data suggest that there may be more slack in labor markets than indicated by the unemployment rate. For example, the share of the workforce that is working part time but would prefer to work full time remains quite high by historical standards. Similarly, while the share of workers in the labor force who are unemployed and have been looking for work for more than six months has fallen from its peak in 2010, it remains as high as any time prior to the Great Recession.5 There is ongoing debate about why long-term unemployment remains so high and the degree to which it might decline in a more robust economy. As I argued more fully in a recent speech, I believe that long-term unemployment might fall appreciably if economic conditions were stronger.6

The low level of labor force participation may also signal additional slack that is not reflected in the headline unemployment rate. Participation would be expected to fall because of the aging of the population, but the decline steepened in the recovery. Although economists differ over what share of those currently outside the labor market might join or rejoin the labor force in a stronger economy, my own view is that some portion of the decline in participation likely represents labor market slack.7

Lastly, economists also look to wage pressures to signal a tightening labor market. At present, wage gains continue to proceed at a historically slow pace in this recovery, with few signs of a broad-based acceleration. As the extent of slack we see today diminishes, however, the FOMC will need to monitor these and other labor market indicators closely to judge how much slack remains and, therefore, how accommodative monetary policy should be.

Is inflation moving back toward 2 percent?
A second question that is likely to figure heavily in our assessment of the recovery is whether inflation is moving back toward the FOMC's 2 percent longer-run objective, as envisioned in our baseline outlook. As the most recent FOMC statement emphasizes, inflation persistently below 2 percent could pose risks to economic performance.

The FOMC strives to avoid inflation slipping too far below its 2 percent objective because, at very low inflation rates, adverse economic developments could more easily push the economy into deflation. The limited historical experience with deflation shows that, once it starts, deflation can become entrenched and associated with prolonged periods of very weak economic performance.8

A persistent bout of very low inflation carries other risks as well. With the federal funds rate currently near its lower limit, lower inflation translates into a higher real value for the federal funds rate, limiting the capacity of monetary policy to support the economy.9 Further, with longer-term inflation expectations anchored near 2 percent in recent years, persistent inflation well below this expected value increases the real burden of debt for households and firms, which may put a drag on economic activity.

I will mention two considerations that will be important in assessing whether inflation is likely to move back to 2 percent as the economy recovers. First, we anticipate that, as labor market slack diminishes, it will exert less of a drag on inflation. However, during the recovery, very high levels of slack have seemingly not generated strong downward pressure on inflation. We must therefore watch carefully to see whether diminishing slack is helping return inflation to our objective.10 Second, our baseline projection rests on the view that inflation expectations will remain well anchored near 2 percent and provide a natural pull back to that level. But the strength of that pull in the unprecedented conditions we continue to face is something we must continue to assess.

Finally, the FOMC is well aware that inflation could also threaten to rise substantially above 2 percent. At present, I rate the chances of this happening as significantly below the chances of inflation persisting below 2 percent, but we must always be prepared to respond to such unexpected outcomes, which leads us to my third question.

What factors may push the recovery off track?
Myriad factors continuously buffet the economy, so the Committee must always be asking, "What factors may be pushing the recovery off track?" For example, over the nearly 5 years of the recovery, the economy has been affected by greater-than-expected fiscal drag in the United States and by spillovers from the sovereign debt and banking problems of some euro-area countries. Further, our baseline outlook has changed as we have learned about the degree of structural damage to the economy wrought by the crisis and the subsequent pace of healing.

Let me offer an example of how these issues shape policy. Four years ago, in April 2010, the outlook appeared fairly bright. The emergency lending programs that the Federal Reserve implemented at the height of the crisis had been largely wound down, and the Fed was soon to complete its first large-scale asset purchase program. Private-sector forecasters polled in the April 2010 Blue Chip survey were predicting that the unemployment rate would fall steadily to 8.6 percent in the final quarter of 2011.11

This forecast proved quite accurate--the unemployment rate averaged 8.6 percent in the fourth quarter of 2011. But this was not the whole story. In April 2010, Blue Chip forecasters not only expected falling unemployment, they also expected the FOMC to soon begin raising the federal funds rate. Indeed, they expected the federal funds rate to reach 1.3 percent by the second quarter of 2011.12 By July 2010, however, with growth disappointing and the FOMC expressing concerns about softening in both growth and inflation, the Blue Chip forecast of the federal funds rate in mid-2011 had fallen to 0.8 percent, and by October the forecasters expected that the rate would remain in the range of 0 to 25 basis points throughout 2011, as turned out to be the case.13 Not only did expectations of policy tightening recede, the FOMC also initiated a new $600 billion asset purchase program in November 2010.

Thus, while the reductions in the unemployment rate through 2011 were roughly as forecast in early 2010, this improvement only came about with the FOMC providing a considerably higher level of accommodation than originally anticipated.

This experience was essentially repeated the following year. In April 2011, Blue Chip forecasters expected the unemployment rate to fall to 7.9 percent by the fourth quarter of 2012, with the FOMC expected to have already raised the federal funds rate to near 1 percent by mid-2012.14

As it turned out, the unemployment rate forecast was once more remarkably accurate, but again this was associated with considerably more accommodation than anticipated. In response to signs of slowing economic activity, in August 2011 the FOMC for the first time expressed its forward guidance in terms of the calendar, stating that conditions would likely warrant exceptionally low levels for the federal funds rate at least through mid-2013. The following month, the Committee added to accommodation by adopting a new balance sheet policy known as the maturity extension program. 15

Thus, in both 2011 and 2012, the unemployment rate actually declined by about as much as had been forecast the previous year, but only after unexpected weakness prompted additional accommodative steps by the Federal Reserve. In both cases, I believe that the FOMC's decision to respond to signs of weakness with significant additional accommodation played an important role in helping to keep the projected labor market recovery on track.16 These episodes illustrate what I described earlier as a vital aspect of effective monetary policymaking: monitor the economy for signs that events are unfolding in a materially different manner than expected and adjust policy in response in a systematic manner. Now I will turn from the task of monitoring to the policy response.

Policy Challenges in an Unprecedented Recovery
Fundamental to modern thinking on central banking is the idea that monetary policy is more effective when the public better understands and anticipates how the central bank will respond to evolving economic conditions. Specifically, it is important for the central bank to make clear how it will adjust its policy stance in response to unforeseen economic developments in a manner that reduces or blunts potentially harmful consequences. If the public understands and expects policymakers to behave in this systematically stabilizing manner, it will tend to respond less to such developments. Monetary policy will thus have an "automatic stabilizer" effect that operates through private-sector expectations. It is important to note that tying the response of policy to the economy necessarily makes the future course of the federal funds rate uncertain. But by responding to changing circumstances, policy can be most effective at reducing uncertainty about the course of inflation and employment.

Recall how this worked during the couple of decades before the crisis--a period sometimes known as the Great Moderation. The FOMC's main policy tool, the federal funds rate, was well above zero, leaving ample scope to respond to the modest shocks that buffeted the economy during that period. Many studies confirmed that the appropriate response of policy to those shocks could be described with a fair degree of accuracy by a simple rule linking the federal funds rate to the shortfall or excess of employment and inflation relative to their desired values.17 The famous Taylor rule provides one such formula.18

The idea that monetary policy should react in a systematic manner in order to blunt the effects of shocks has remained central in the FOMC's policymaking during this recovery. However, the application of this idea has been more challenging. With the federal funds rate pinned near zero, the FOMC has been forced to rely on two less familiar policy tools--the first one being forward guidance regarding the future setting of the federal funds rate and the second being large-scale asset purchases. There are no time-tested guidelines for how these tools should be adjusted in response to changes in the outlook. As the episodes recounted earlier illustrate, the FOMC has continued to try to adjust its policy tools in a systematic manner in response to new information about the economy. But because both the tools and the economic conditions have been unfamiliar, it has also been critical that the FOMC communicate how it expects to deploy its tools in response to material changes in the outlook.

Let me review some important elements in the evolution of the FOMC's communication framework. When the FOMC initially began using its unconventional tools, policy communication was relatively simple. In December 2008, for example, the FOMC said it expected that conditions would warrant keeping the federal funds rate near zero for "some time." This period before the "liftoff" in the federal funds rate was described in increasingly specific, and (as it turned out) longer, periods over time--"some time" became "an extended period," which was later changed to "mid-2013," then "late 2014," then "mid-2015."19 This fixed, calendar-based guidance had the virtue of simplicity, but it lacked the automatic stabilizer property of communication that would signal how and why the stance of policy and forward guidance might change as developments unfolded, and as we learned about the extent of the need for accommodation.

More recently, the Federal Reserve, and I might add, other central banks around the world, have sought to incorporate this automatic stabilizer feature in their communications. In December 2012, the Committee reformulated its forward guidance, stating that it anticipated that the federal funds rate would remain near zero at least as long as the unemployment rate remained above 6-1/2 percent, inflation over the period between one and two years ahead was projected to be no more than half a percentage point above the Committee's objective, and longer-term inflation expectations continued to be well anchored. This guidance emphasized to the public that it could count on a near-zero federal funds rate at least until substantial progress in the recovery had been achieved, however long that might take. When these thresholds were announced, the unemployment rate was reported to be 7.7 percent, and the Committee projected that the 6-1/2 percent threshold would not be reached for another 2-1/2 years--in mid-2015. The Committee emphasized that these numerical criteria were not triggers for raising the federal funds rate, and Chairman Bernanke stated that, ultimately, any decision to begin removing accommodation would be based on a wide range of indicators.

Our communications about asset purchases have undergone a similar transformation. The initial asset purchase programs had fixed time and quantity limits, although those limits came with a proviso that they might be adjusted. In the fall of 2012, the FOMC launched its current purchase program, this time explicitly tying the course of the program to evolving economic conditions. When the program began, the rate of purchases was $85 billion per month, and the Committee indicated that purchases would continue, providing that inflation remained well behaved, until there was a substantial improvement in the outlook for the labor market.

Based on the cumulative progress toward maximum employment since the initiation of the program and the improvement in the outlook for the labor market, the FOMC began reducing the pace of asset purchases last December, stating that "[i]f incoming information broadly supports the Committee's expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-term objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings." Purchases are currently proceeding at a pace of $55 billion per month. Consistent with my theme today, however, the FOMC statement underscores that purchases are not on a preset course--the FOMC stands ready to adjust the pace of purchases as warranted should the outlook change materially.

Recent Changes to the Forward Guidance
At our most recent meeting in March, the FOMC reformulated its forward guidance for the federal funds rate. While one of the main motivations for this change was that the unemployment rate might soon cross the 6-1/2 percent threshold, the new formulation is also well suited to help the FOMC explain policy adjustments that may arise in response to changes in the outlook. I should note that the change in the forward guidance did not indicate a change in the Committee's policy intentions, but instead was made to clarify the Committee's thinking about policy as the economy continues to recover. The new guidance provides a general description of the framework that the FOMC will apply in making decisions about the timing of liftoff. Specifically, in determining how long to maintain the current target range of 0 to 25 basis points for the federal funds rate, "the Committee will assess progress, both realized and expected, toward its objectives of maximum employment and 2 percent inflation." In other words, the larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained. This approach underscores the continuing commitment of the FOMC to maintain the appropriate degree of accommodation to support the recovery. The new guidance also reaffirms the FOMC's view that decisions about liftoff should not be based on any one indicator, but that it will take into account a wide range of information on the labor market, inflation, and financial developments.

Along with this general framework, the FOMC provided an assessment of what that framework implies for the likely path of policy under the baseline outlook. At present, the Committee anticipates that economic and financial conditions will likely warrant maintaining the current range "for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored."

Finally, the Committee began explaining more fully how policy may operate in the period after liftoff, indicating its expectation that economic conditions may, for some time, warrant keeping short-term interest rates below levels the Committee views as likely to prove normal in the longer run. FOMC participants have cited different reasons for this view, but many of the reasons involve persistent effects of the financial crisis and the possibility that the productive capacity of the economy will grow more slowly, at least for a time, than it did, on average, before the crisis. The expectation that the achievement of our economic objectives will likely require low real interest rates for some time is again not confined to the United States but is shared broadly across many advanced economies. Of course, this guidance is a forecast and will evolve as we gain further evidence about how the economy is operating in the wake of the crisis and ensuing recession.

Conclusion
In summary, the policy framework I have described reflects the FOMC's commitment to systematically respond to unforeseen economic developments in order to promote a return to maximum employment in a context of price stability.

It is very welcome news that a return to these conditions has finally appeared in the medium-term outlook of many forecasters. But it will be much better news when this objective is reached. My colleagues on the FOMC and I will stay focused on doing the Federal Reserve's part to promote this goal.

 

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Wed, 04/16/2014 - 12:24 | 4665434 pods
pods's picture

Algos are gonna love this. Fasten your seatbelts!

pods

Wed, 04/16/2014 - 12:27 | 4665446 Canadian Dirtlump
Canadian Dirtlump's picture

It is at or near the anniversary of the precious metals massacre. Should be a fun day. Yellen is like obama, a wolf in sheep's clothing. Looks like your grandma, but is a bowl cut wearing demonic vessel.

Wed, 04/16/2014 - 12:33 | 4665469 SoilMyselfRotten
SoilMyselfRotten's picture

Take away Belgium and let's see what her punchbowl looks

Wed, 04/16/2014 - 12:39 | 4665512 Canadian Dirtlump
Canadian Dirtlump's picture

I have no idea how long the IMF belgium shellgame can continue, but probably longer than many can remain solvent. Oh well, in other news, fuck everything.

Wed, 04/16/2014 - 12:57 | 4665577 jbvtme
jbvtme's picture

Pat I'd like to solve the puzzle: "I WOULD NOT FUCK HER WITH YOUR DICK".  Applause....as Vanna blushes.

Wed, 04/16/2014 - 12:57 | 4665595 Canadian Dirtlump
Canadian Dirtlump's picture

word on the street is she's hung like a donkey.

Wed, 04/16/2014 - 13:06 | 4665636 Hippocratic Oaf
Hippocratic Oaf's picture

Reporter (usually Liesman): Fed Chaircunt, you do realize the last time you spoke, the market sold-off a bit  due to your hokey free speech. Do you think maybe this time, you'll read from something someone actually has knowledge of or maybe borrow one of obama's teleprompters?

 

Fed Chaircunt: I only answer to Uncle Warren when he's drinking wine in the bathtub. (all mkts 'cept phys rally)

Wed, 04/16/2014 - 13:13 | 4665673 Herd Redirectio...
Herd Redirection Committee's picture

See the conceit?  We have a goddamn COMMITTEE that decides the economic future of the nation?

Anyone see anything wrong with that?  No?

Yellen is the new High Priest(ess).  "Trust the experts.  We are looking out for you.  Its too complicated to understand, so just leave it to us.  Full employment and price stability, by decree!" 

Wed, 04/16/2014 - 13:37 | 4665819 TruthInSunshine
TruthInSunshine's picture

Fun Fact:

If you close your eyes and listen to Yellen speaking, you'll swear that Woody Allen's retarded sibling is running the Fed.

Wed, 04/16/2014 - 13:38 | 4665827 Four chan
Four chan's picture

a cat with a mellon on its head in the shape of a helmet.

Wed, 04/16/2014 - 14:41 | 4666120 THX 1178
THX 1178's picture

Hmm... So now I can rightly blame both Bernanke AND Yellen for the pending collapse? Cuz that's what I've inferred from this article. Maybe bernanke deserves the brunt of our anger... but there's always enough for Yellen the Felon.

Wed, 04/16/2014 - 16:31 | 4666204 SoilMyselfRotten
SoilMyselfRotten's picture

It's easier to read Janet with a Blue light in my hand

Wed, 04/16/2014 - 13:58 | 4665944 TSTM
TSTM's picture

Apparently the only way Yellen can imagine "full employment" is with the coffers of the TBTF banks so full as to be spilling over the brim and thus finally "trickling" devalued FRNs down to a parched Main Street. Yeah that will work. We have 6 years proof. 

Wed, 04/16/2014 - 13:13 | 4665671 max2205
max2205's picture

Watch for the signals....if she adjusts her bra then buy the wides....if she pulls up her panties go long....if she twirls her hair then hedge....if she farts close out your longs

Wed, 04/16/2014 - 14:02 | 4665958 sodbuster
sodbuster's picture

What if she shits herself?

Wed, 04/16/2014 - 16:32 | 4666210 SoilMyselfRotten
SoilMyselfRotten's picture

Someone ring?

 

Wed, 04/16/2014 - 12:35 | 4665472 sodbuster
sodbuster's picture

Thank you Mr. Yellen. And now, back to your regularly scheduled programing for the masses.

Wed, 04/16/2014 - 12:41 | 4665525 CrashisOptimistic
CrashisOptimistic's picture

Just how long were these global extraordinary actions supposed to go on?

When are the questions going to be asked . . . "when do we get back to normal?  Is this world of constant central bank control to be permanent?"

 

Wed, 04/16/2014 - 13:08 | 4665648 ejmoosa
ejmoosa's picture

This is the new normal.

Wed, 04/16/2014 - 12:35 | 4665475 derek_vineyard
derek_vineyard's picture

end of 2016?   so minimum 2 1/2 years more of zirp  (of course we all know its zirp to infinity, but thats the feds longest lead guidance)

markets must be ripping upwards

Wed, 04/16/2014 - 12:41 | 4665526 Quinvarius
Quinvarius's picture

I doubt they are willing to, or capable of, funding a repeat of that disaster with actual gold deliveries.  I'd welcome the chance to stack up at even more stupid prices.  But I think GLD is actually empty now, just like SLV.  I think they both had their product used by the bankers to fund the attacks with deliveries, and it was probably all legal how they got a hold of it.  The glaring 2 year undeviating flatline of SLV inventory levels is an oddity I cannot explain,without assuming 10k is the new zero.  We shall see what GLD inventories look like for the next few years.  I assume 1k is the new zero in their accounting books.  Just speculation of course.  But I have learned well how bankers operate.  They are liars and thieves who make a living selling other people's stuff or stuff that does not exist.

Wed, 04/16/2014 - 13:42 | 4665845 Four chan
Four chan's picture

the feds mandate by its owners since 1915.

enslave a free people to debt.

capture all productive assets through boom and bust with debt created out of thin air.

Wed, 04/16/2014 - 13:01 | 4665614 Stoploss
Stoploss's picture
  • *YELLEN: QUITE PLAUSABLE FED HITS JOBS, INFLATION GOALS END-2016

Ben said this would occur this year, when he spoke two years ago..

See now the timeline keeps moving further and further out, culminating in a gigantic clusterfuck of not one motherfucking thing happening for the good of anybody except the banks.

The almighty FED is nothing but a BAD JOKE now.

================================FUCK THE FED=================================

Wed, 04/16/2014 - 13:12 | 4665663 drendebe10
drendebe10's picture

"There ain't nuthin uglier than an old white woman."  Fred Sanford

Wed, 04/16/2014 - 13:17 | 4665687 john39
john39's picture

ok, but what does that have to do with janet yellen?

Wed, 04/16/2014 - 13:13 | 4665668 NOTW777
NOTW777's picture

hilarious - blame weather and twists and turns; could be up could be down, we dont know but trust us everything is fine

Wed, 04/16/2014 - 12:38 | 4665500 fauxhammer
fauxhammer's picture

I see the early hints of what will be a very fine beard, I think

Wed, 04/16/2014 - 12:56 | 4665588 BandGap
BandGap's picture

The wonders of high definition.

Wed, 04/16/2014 - 12:42 | 4665535 Doctor Freckles
Doctor Freckles's picture

She is basically saying ...

"Shit man - shit sucks ..."

Wed, 04/16/2014 - 12:27 | 4665445 Obama_4_Dictator
Obama_4_Dictator's picture

Fuckin, bitch, cunt, piece of bankster trash, shut the fuck up, if everything thing is fine, then why speak at all.

If the Government takes in record revenues, the recession is over, and military spending is down, why is there a $400 billion deficit? HINT: it's not a tax problem.  Fuck you!

Wed, 04/16/2014 - 12:29 | 4665454 Canadian Dirtlump
Canadian Dirtlump's picture

We're all friends here, don't hold back. L O L. Speaking of which, more funding for adult onset tourette's syndrome should be diverted from the likes of congressional barber shops.

Wed, 04/16/2014 - 12:46 | 4665547 LawsofPhysics
LawsofPhysics's picture

Yes, in a nutshell; "we will continue to print money out of thin air and hand it to our banking friends in the financial/war sector, fuck everyone else". - Janet Yellen

Wed, 04/16/2014 - 12:27 | 4665448 estoniantiger
estoniantiger's picture

Job market is showing sings of strong recovery, inflation is not high enough and no bubbles. There it is for you.

Wed, 04/16/2014 - 12:28 | 4665451 Fiat Burner
Fiat Burner's picture

Yellen is a fucking (useful) idiot.

Wed, 04/16/2014 - 12:39 | 4665510 Looney
Looney's picture

Yellen is a fucking USELESS cunt.

There... fixed it for ya ;-)

Looney

Wed, 04/16/2014 - 12:28 | 4665453 QQQBall
QQQBall's picture

I'd like to see an old Bernank speech with him projecting 2-3 years for recovery. hahahha

Wed, 04/16/2014 - 12:35 | 4665455 khakuda
khakuda's picture

Now children, free lunch for everyone then a nap.  My voice is annoying, isn't it?

Now, here are some words:  Transitory, inflation, unemployment.  Don't forget to eat your green shoots and don't forget to say goodbye to grandpa Greenspan and have some ribbon candy on the way out.

Wed, 04/16/2014 - 12:29 | 4665457 SheepDog-One
SheepDog-One's picture

OH ok, this why totally non-manipulated indexes are up across the board today, there's the hope for a ladle more QE porridge.

Wed, 04/16/2014 - 12:30 | 4665459 stinkhammer
stinkhammer's picture

bullfucking shit liar shill bitchass whore

Wed, 04/16/2014 - 12:34 | 4665470 PlusTic
PlusTic's picture

she did here job, fukked bonds and goosed stocks...fukkin big mouthed ole bag

Wed, 04/16/2014 - 12:34 | 4665473 Tsar Pointless
Tsar Pointless's picture

S&P 2000 by June.

Wed, 04/16/2014 - 12:37 | 4665498 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

By July or Aug

Wed, 04/16/2014 - 12:38 | 4665501 Not Goldman Sachs
Not Goldman Sachs's picture

S & P 2000 in May!  She gonna Pump You Up!

Wed, 04/16/2014 - 12:38 | 4665502 Not Goldman Sachs
Not Goldman Sachs's picture

S & P 2000 in May!  She gonna Pump You Up!

Wed, 04/16/2014 - 12:36 | 4665486 NDXTrader
NDXTrader's picture

QE is over...for now. They don't even mention it anymore. Just that rates will stay low blah, blah, blah

Wed, 04/16/2014 - 12:36 | 4665487 youngman
youngman's picture

I would ask who is Belgim and where are they getting their money???

 

Wed, 04/16/2014 - 12:49 | 4665559 BurningFuld
BurningFuld's picture

"What is the Fed?" Alex

Wed, 04/16/2014 - 12:36 | 4665488 Son of Captain Nemo
Son of Captain Nemo's picture

So when is Janet going to retire from the Fed and start baking cookies???...

Wed, 04/16/2014 - 12:39 | 4665493 Dr. Engali
Dr. Engali's picture

The markets are up and metals are under control. You're all set Ms. Yellen. We have your back for your speech.

 

Sincerly:

The Banking Cabal

Wed, 04/16/2014 - 12:37 | 4665495 Rising Sun
Rising Sun's picture

MOAR doublespeak and riddles.

What the fuck does this mean bitch?????  You going to jack POMO or not???

 

Fucking cunt!!!!!!!!!!!!

Wed, 04/16/2014 - 12:38 | 4665504 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

When the FED speaks ALGOS listens.

Wed, 04/16/2014 - 12:39 | 4665508 asscannon101
asscannon101's picture

Love that fucking picture:
'Thanks for the cookie, Grandma!'
'You're welcome, kitten..'

Wed, 04/16/2014 - 12:48 | 4665556 Ariadne
Ariadne's picture

Dumb and Dumber

Wed, 04/16/2014 - 12:39 | 4665511 messystateofaffairs
messystateofaffairs's picture

Oh look, the Rottenchild zios have sent a sweet little granny with a big fat dildo to shove up our asses, isn't that sweet. Now everbody bend over and say cheese while granny gets to work.

Wed, 04/16/2014 - 12:51 | 4665572 john39
john39's picture

yeah, but... why does the dildo have jagged teeth? oh wait...

Wed, 04/16/2014 - 12:58 | 4665599 nortie
nortie's picture

The vulgar analogy, in this particular case, is oddly appropriate. She is concentrating intensely on reading what has been scripted for her like an eight grader, but her diction is screaming "low class" so loudly that I cannot pay attention to what she is saying.

Fed= bastards sucking the life out of honest people trying to raise a family.

Wed, 04/16/2014 - 12:40 | 4665516 AndrewJackson
AndrewJackson's picture

I am so sick of this farse. According to Yellen, it would be a problem if there was a huge boon in innovation and productivity causing prices of products to fall across the board. Of course a 50% drop in the real price of goods would be met with a 100% increase in the money supply directed to the banks/government. How people pretend like these assholes no what they are talking about is just unreal.

Wed, 04/16/2014 - 12:40 | 4665517 estoniantiger
estoniantiger's picture

Seriously, can anybody be surprised with this? Just as full of shit as expected.

Wed, 04/16/2014 - 13:04 | 4665520 benbushiii
benbushiii's picture

These economic wizards have no idea what they are doing.  This is like sitting in an economics class and listening to your professor talking about theory as if it were scientific fact.  The assumptions and theories used by the Central Banks are designed to inflate the assets for the banks and not for the benefit of the common man.  If capital markets were allowed to function normally, risk would be priced in, not abolished, and bad business models would be wiped out.  Why do Central Banks need 2% inflation?  To confiscate the 99%'s money and charge them interest.

Wed, 04/16/2014 - 12:41 | 4665521 Thermopylae
Thermopylae's picture

What is this?  A remake of "Kingpin"?

Janet at the door, in a see through nightie, saying "Time to pay the rent".

You running for the bathroom to vomit.

Either way, someone is getting screwed.      "Comon, it's not that bad!"

Wed, 04/16/2014 - 12:41 | 4665522 thetruthseeker
thetruthseeker's picture

These Central Bankers are nothing more than Financial Jihadis, to quote Max Keiser.  They are suicide bankers, and I will be happy when they have finally embodied their namesake.  It will be a great day for peace and prosperity in this world.

Wed, 04/16/2014 - 12:41 | 4665523 DavidC
DavidC's picture

More of the same waffle and, forgive me, blah blah fucking blah.

DavidC

Wed, 04/16/2014 - 12:42 | 4665531 q99x2
q99x2's picture

She took her time preparing herself so she would look her best.

Knocked a fruit fly dead off my screen soon as her picture appeared.

Wed, 04/16/2014 - 12:44 | 4665538 Bill of Rights
Wed, 04/16/2014 - 12:45 | 4665542 Doctor Freckles
Doctor Freckles's picture

Yellen is the kind of Chairperson of the Federal Reserve you remember saying - hey, wasn't she last?

(the last)

(ever)

Wed, 04/16/2014 - 12:47 | 4665553 ebworthen
ebworthen's picture

"Uuurgh, rimblach...accommodation, slurg...gurgle..., inflation...huurgh...glubblub, ...employment, shroglech....uuurgh...."

She reminds me of "Pizza the Hut".

Wed, 04/16/2014 - 12:52 | 4665576 Doctor Freckles
Doctor Freckles's picture

She reminds me of a dark-star porn star ...

From some really rancid dimension ...

(from the crack-whore galaxy)

Wed, 04/16/2014 - 12:48 | 4665557 agstacks
agstacks's picture

You can keep your fucking accomodation. Thanks.

Wed, 04/16/2014 - 12:49 | 4665561 Doctor Freckles
Doctor Freckles's picture

"... rely on 2 less famliar policy tools ..."

a) forward guidance (lying)

b) large scale asset purchase (cheating)

"... FOMC needs to communicate how it expects to deploy its tools in blah, blobbity, blah, blah, blah ..."

Wed, 04/16/2014 - 12:49 | 4665562 pakled
pakled's picture

A hundred quatloos on the newcomer

Wed, 04/16/2014 - 12:51 | 4665568 bullet
bullet's picture

ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ... she should be banned from speaking in public..

Wed, 04/16/2014 - 12:52 | 4665573 BurningFuld
BurningFuld's picture

Yellen: " Bla bla bla. Bla bla bla bla."...........................................................

 

"Thank you for your time"

 

Wed, 04/16/2014 - 12:55 | 4665585 Doctor Freckles
Doctor Freckles's picture

Janet Yellen promises purchases will be reduced or adjusted at a "medium pace".

http://youtu.be/zLm5oSJRxIU

Wed, 04/16/2014 - 13:03 | 4665586 ebworthen
ebworthen's picture

"Automatic stabilizer" function?  WTF?

C'mon you monster, just say it like it is: 

"We will do whatever it takes to float the banks and the equities casino."

"2% Inflation" and "maximum employment" my puckered ass hole!

"Lift-off"?  And what in Hades name is that?

God, what a bag of lies!

Wed, 04/16/2014 - 12:57 | 4665596 nelsonmandella
nelsonmandella's picture

150bn per month 

Wed, 04/16/2014 - 12:58 | 4665598 Doctor Freckles
Doctor Freckles's picture

YOU HEARD IT!

ZIRP AFTER LIFT-OFF!

ZERO DOWN LOANS, FOREVER!

(but it's all based on "anchors" and shit)

Wed, 04/16/2014 - 12:58 | 4665600 Colonel Klink
Wed, 04/16/2014 - 12:59 | 4665603 medium giraffe
medium giraffe's picture

I can't believe she's not on fire again.  I've asked God several times now, and I keep hoping, but is she ever on fire?  Even once?!

Starting to think this 'praying' gig is a waste of time.

Wed, 04/16/2014 - 13:00 | 4665606 beaver club
beaver club's picture

Peter from the Monkees is running the fed now?  WTF he didn't age well. 

Wed, 04/16/2014 - 13:20 | 4665711 brak
brak's picture

are you sure that's not George Costanza's mom?

Wed, 04/16/2014 - 13:00 | 4665609 Calculus99
Calculus99's picture

FED COMMITTED TO ACCOMMODATION TO SUPPORT RECOVERY

Talk about a scratched record.

How many years have we been hearing the same message?

Wed, 04/16/2014 - 13:00 | 4665611 khakuda
khakuda's picture

And the first question from our bosses at Goldman, Sachs.

Wed, 04/16/2014 - 13:01 | 4665613 MrBoompi
MrBoompi's picture

What a bunch of bullshit.  Exactly who is the "public" she talks about when it comes to communicating policy?  Not the public anyone out here would think of.  And why would we ever think "large scale asset purchases" are good for us?  Why can't they tell us these are not assets?  They are toxic financial waste their member banks want off of their books.  Why promote a ficiticious unemployment rate?  Why tell us we are in a recovery? 

Propaganda is still propaganda, whether is comes from Janet's mouth, or Bens'.  I suppose the people who in attendance there can rest assured the same old shit is going to take place.

Wed, 04/16/2014 - 13:02 | 4665619 Doctor Freckles
Doctor Freckles's picture

JESUS -

Abby: "Madam Blah Blah - how can you give academics like me more money blah, blah, blah ... private sector?"

Yellen: "We will get you money bitch - shut the hell up ..."

(how it sounds in my head)

Wed, 04/16/2014 - 13:02 | 4665620 Dr. Engali
Dr. Engali's picture

Oh help me.... Abby Cohen..... I'm sick of these pigmen.

Wed, 04/16/2014 - 13:05 | 4665630 Doctor Freckles
Doctor Freckles's picture

Yellen: "... we took those jobs ... we sent them to China. But we will keep building this student loan bubble, because what else can we do ..."

 

Wed, 04/16/2014 - 13:05 | 4665637 digitlman
digitlman's picture

FULL OF SHIT.

Wed, 04/16/2014 - 13:06 | 4665638 tommylicious
tommylicious's picture

So if there was in fact "no change in policy" with last statement, but market thot there wuz, then the market in fact was misunderstanding fed's intentions all along.

Wed, 04/16/2014 - 13:06 | 4665642 N57Mike
N57Mike's picture

"What does it matter" ......
..... "It cannot be helped"

Wed, 04/16/2014 - 13:08 | 4665643 ebworthen
ebworthen's picture

You lying hag!!!

Yes, bespectacled academics stuffed with sophistic straw can destroy lives!

Wed, 04/16/2014 - 13:08 | 4665650 wmbz
wmbz's picture

Jack Yellen is saying absolutly nothing new. They will keep doing the same thing on and on, no turning back now. The U.S. unbacked dollar will at some point be worthless, not worth-less. These sick sons of bitches are in it for themselves always have been.

Wed, 04/16/2014 - 13:09 | 4665653 orangedrinkandchips
orangedrinkandchips's picture

AP forgot to add...THE CUNT HAS NO OTHER CHOICE BUT SUPPORT THE MARKET, FOOL. 

Wed, 04/16/2014 - 13:09 | 4665654 khakuda
khakuda's picture

And another question from our bosses at Goldman, Sachs who own the floor for questions.

Wed, 04/16/2014 - 13:12 | 4665658 Dingleberry
Dingleberry's picture

The fed has de facto puts on the stock market and RE.

 

 

This is all you need to know.

Wed, 04/16/2014 - 13:12 | 4665661 Doctor Freckles
Doctor Freckles's picture

Yellen: "Europe sucks ... a return to growth ... problems with stuff and other things ..."

(and glug,glug,glug goes the cheap whiskey)

Wed, 04/16/2014 - 13:12 | 4665662 nortie
nortie's picture

What is disturbing, more than looking and listening to this puppet woman, is the hypocritical hand clapping of the people present. These are the people who determine the fate of our Country. God help us.

Wed, 04/16/2014 - 13:20 | 4665675 HardlyZero
HardlyZero's picture

When she is off the script...Um, Uh, mmm, Umm, Aaand, Sooo, Isss,...are some of her filler transitions between concepts.  These  should come out in a complete word cloud.

 

If that is all there is for this week it looks like the markets may have topped out on this hump day.

What more to expect except for negatives going forward ?

Wed, 04/16/2014 - 13:15 | 4665676 ebworthen
ebworthen's picture

She just admitted it, the FED exists to prop the big banks using taxpayer money.

Nothing to do with employment or controlling inflation, just propping their bankster masters.

"If the TBTF banks don't have enough capital, we will provide it out of the public treasury."

Thieves!  Liars!  Thugs!  Miscreants!  Rapers of savers!  Oppressors of households!

END THE FED!!!

Wed, 04/16/2014 - 16:32 | 4666670 NEOSERF
NEOSERF's picture

Wasn't the Fed a creation BY the big banks?  The great irony is that it was created in 1913 to avert panics which it did masterfully in 2009 but will end up creating the mother of all panics at some point in the coming years.

 

The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.[2][3][4][5][6][7] Over time, the roles and responsibilities of the Federal Reserve System have expanded, and its structure has evolved.[3][8] Events such as the Great Depression were major factors leading to changes in the system.[9

Wed, 04/16/2014 - 13:15 | 4665678 Doctor Freckles
Doctor Freckles's picture

I can't listen to her any longer ...

(she is giving me a brain tumor)

Wed, 04/16/2014 - 13:15 | 4665679 locklimit
locklimit's picture

At what point do we stop just posting shit online and actually stand up to the people who are ruining our country right infront of our eyes?  Seems to me that the educated people who actually understand what is happening have become just as complacent as the uneducated sheep. 

Wed, 04/16/2014 - 13:15 | 4665683 Doctor Freckles
Doctor Freckles's picture

(duh)

Wed, 04/16/2014 - 13:15 | 4665680 uncle_vito
uncle_vito's picture

Every time this cunt talks the market drops.   Wish she would STFU  and let this market recover.

Wed, 04/16/2014 - 13:21 | 4665703 valley chick
valley chick's picture

Since this bitch talks in riddles.......what the fuck is she saying? Can't she speak where the people can understand?

Wed, 04/16/2014 - 13:20 | 4665706 Magnum
Magnum's picture

Say what you want about Bernanke but at least he had the LOOK of a banking authority.  Who is this embarassing munchkin hired by Obama to reassure the world about the safety of investments in USA?

Wed, 04/16/2014 - 13:23 | 4665728 elwind45
elwind45's picture

More like a drone and less like helicopter

Wed, 04/16/2014 - 13:33 | 4665780 royal
royal's picture

What if for once she told the truth?

  • *Yellen says Fed commited to policies which benefit the banks and harm Main Street
  • *Yellen says Fed will continue to loot and plunder until there is nothing left to steal
  • *Yellen: Open market operations to suppress the gold price and mask inflation 'highly successful'
Wed, 04/16/2014 - 13:41 | 4665838 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

lol even if she said the truth the sheep/free shit army/whatever..... still wouldnt do a damn thing.....NFL drafts are coming, NBA playoffs are near (72% of americans are chemically subdued now). this country is fucking toast, the question is how will it be discarded.

Wed, 04/16/2014 - 13:42 | 4665847 rsnoble
rsnoble's picture

Oh look...........a nice GREEN backdrop for mrs.god.

Wed, 04/16/2014 - 13:42 | 4665848 elwind45
elwind45's picture

Shes got the jack! The madam is being treated like an originator of QE philosophy? She is all in LIKE IT OR NOT and movers and shakers like her commitment BLAH

Wed, 04/16/2014 - 13:51 | 4665903 bugs_
bugs_'s picture

Putting the Perp in Perplexing since 1913

Wed, 04/16/2014 - 13:52 | 4665911 Baby Eating Dingo22
Baby Eating Dingo22's picture

Ewww...People really gather round to watch Janet give oral to a bunch of pock-marked assed banksters?

Wed, 04/16/2014 - 13:53 | 4665919 The worst trader
The worst trader's picture

lies lies lies yaah

Wed, 04/16/2014 - 13:56 | 4665938 drendebe10
drendebe10's picture

Again, "There ain't nuthin uglier than an old white woman."   Fred Sanford

Wed, 04/16/2014 - 14:16 | 4666014 Duude
Duude's picture

Have no fear, Santa Yellen is here. 

Wed, 04/16/2014 - 14:30 | 4666068 moneybots
moneybots's picture

"Of course, if the economy obediently followed our forecasts, the job of central bankers would be a lot easier"

 

In other words, the FED doesn't really know what it is doing and what the FED does, doesn't really work.

Wed, 04/16/2014 - 14:34 | 4666087 thamnosma
thamnosma's picture

I am so grateful to those who actually listen to these wretched people speak and summarize their lies for me.  Saves me from numerous episodes of anger and nausea.

Wed, 04/16/2014 - 14:37 | 4666100 damicol
damicol's picture

What sane person is going to dubject their ears to the fetid stinging garbage uttered by this clapped out old camels cunt.

Do you think one of her mincing faggoty pooftah minions   reads these comments and relays it back to  the old witch .If you do tell her I say she is not just a clapped out old camel cunt, but the worst kind of fucking corrupt thieving camel cunt.

There I feel better now already

Wed, 04/16/2014 - 14:41 | 4666118 moneybots
moneybots's picture

"the Committee will assess progress, both realized and expected, toward its objectives of maximum employment and 2 percent inflation."

 

ZERO inflation is stable prices.  The mandate is for ZERO inflation.

 

There is no maximum employment.  The FED destroys employment any time it gets near any maximum.

Wed, 04/16/2014 - 16:12 | 4666556 Fíréan
Fíréan's picture

Is Yellen the real Granny Fran ?

http://youtu.be/RGWoRJO5d0M

When you got close to her, does her breath "smell like a bathing cap full of cat crap" ?

Wed, 04/16/2014 - 16:29 | 4666650 NEOSERF
NEOSERF's picture

Is it just me or does the Fed seem to be morphing into a Hogwarts type look...can't get the picture of Yellen with a pointy hat and broom out of me head.

Wed, 04/16/2014 - 17:22 | 4666841 TrustWho
TrustWho's picture

After this speech, well, white males will be able to blame the collapse on a Black man and a woman....sweet revenge as we all starve to death.

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