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Janet Yellen Explains To Congress How Devoted She Is To Americans' Interests - Live Feed

Tyler Durden's picture




 

Having yesterday explained how The Fed is "devoted" to Americans' interests and how "excited" she is to raise rates, Janet Yellen is set to face the Joint Economic Committee of Congress today... to explain to them how - in her mind - everything is awesome enough to hike rates, despite Chinese stocks crashing again, carnage in commodities, a revenues recession, plunging EBITDA, a collapse in US manufacturing, housing rolling over, and auto sales fading (light vehicle incentives up 14% YoY). Following the renewed volatility in markets, thanks to Draghi, the question is will Yellen be a little more hawkish given the room the ECB has given her?

Yesterday's punchline:

Were the FOMC to delay the start of policy normalization for too long, we would likely end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of our goals. Such an abrupt tightening would risk disrupting financial markets and perhaps even inadvertently push the economy into recession

Ironically, it is rate hikes that have been the cause of every single recession since the arrival of the Fed.

Live Feed...

 

As Citi's Stephen Englander notes,

Fed Chair Yellen’s problem is not the hawks or center of FOMC, who feel a hike is overdue. Her problem is the doves who still feel that there is significant slack and that the amount of effective stimulus is much less than zero rates and a big balance sheet would suggest.  So if she wants to have a consensus with one or fewer dissents she has to convince the doves that she is committed to a slow pace of hikes. Along these lines, both Evans and Brainard yesterday seemed more or less reconciled to December lift-off and their emphasis was on the pace of hikes subsequently, and they are pretty committed doves.

 

The easiest way for her to sound dovish is to keep talking about 1) the dollar and implied tightening of monetary conditions – Fed focus on the currency is rare enough still that it will be effective, 2) the need to be prudent in assessing the impact of lift-off on the economy and asset markets, 3) the sorry state of the rest of the world,  and 4) her view that the equilibrium interest rate remains low and will rise only gradually. Essentially, she will point to lift-off and be almost apologetic about it. Just talking about the USD repeatedly will convince the market that the FOMC will take it into account in determining the pace of hikes. (My personal view is that USD has modest impact, but that is not here or there with respect to the stance that Fed Chair Yellen will take.)

 

What would be a hawkish surprise?  Talk about how robust US economy has been, make some comments on inflation firming in parts of the data, talk about the fast pace of the unemployment drop and say something like market is already pretty dovish in its expectations. It’s possible but I can’t see what would motivate her to make this emphasis.

*  *  *

Don't forget, it's all for you...

 

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Thu, 12/03/2015 - 11:00 | 6870425 aliki
aliki's picture

americans interests ... by allowing them to collect no interest when they park $$$ in their savings accounts or bonds.

quick question, do they now completely re-write college text books in-order to explain how interest works on bonds? im not sure id ever want to explain this new system to a  young person.

Thu, 12/03/2015 - 11:12 | 6870494 RockRiver
RockRiver's picture

You read this headline and you have to just chuckle....Devoted to American interests...LOL

Thu, 12/03/2015 - 11:31 | 6870623 Truther
Truther's picture

Yeahhh, devoted to steal the shit out of the public. Get ready to pay in 2016.

Thu, 12/03/2015 - 11:47 | 6870708 mtl4
mtl4's picture

Article is totally wrong.  Rate hikes are not the cause of recessions, politicians messing with the business cycle to continue endless defecit spending are the real root cause.  The rate hikes are always too little too late to slow down the freight train as the end game approaches.

Thu, 12/03/2015 - 12:16 | 6870944 Welfare Tycoon
Welfare Tycoon's picture

She sounds more like a man than some of the men that are asking her questions.

And agreed, rate hikes are irrelevant. The economy is shit and there is no skirting around that-rate hike or no rate hike. Whatever makes SHTF will be made into the martyr du jour, but in reality all it is is a scapegoat for the underlying issue. 

Let rates normalize and have a sudden, painful, yet remediating crash OR...

Let things continue the way they are and have the market die a slow, painful death. 

Thu, 12/03/2015 - 12:33 | 6871060 glenlloyd
glenlloyd's picture

What, is Lindsey Graham on that committee?

Thu, 12/03/2015 - 11:58 | 6870821 More Ammo
More Ammo's picture

"Devoted to American interests...LOL"

 

So I take it yelling only considers the banksers Americans?

 

Just let the rest of the slaves eat cake....

Thu, 12/03/2015 - 13:23 | 6871315 The Pope
The Pope's picture

American interest 'RATES' (lack thereof) perhaps.

Thu, 12/03/2015 - 12:55 | 6871173 SILVERGEDDON
SILVERGEDDON's picture

She could prove her devotion to the American people by disbanding the FED, and having all of the board members take a swan dive off the roof into the parking lot, just to be safe.

Thu, 12/03/2015 - 11:34 | 6870633 Vlad the Inhaler
Vlad the Inhaler's picture

Seriously, my girl keeps telling me she needs to get a financial advisor because she's not earning anything on her nest svaings. I tell her return of capital is the name of the game today, not return on capital.

Thu, 12/03/2015 - 11:50 | 6870737 mtl4
mtl4's picture

Good advice to her, end game is coming so be patient.

Thu, 12/03/2015 - 12:26 | 6871005 BullyBearish
BullyBearish's picture

If you be smellin yellin you be knowin she's a felon...

Thu, 12/03/2015 - 11:00 | 6870429 sam i am
sam i am's picture
Putin delivers state-of-the-nation address December 3rd, 2015 – English audio

http://thesaker.is/putin-delivers-state-of-the-nation-address-december-3...

 

 

Thu, 12/03/2015 - 11:00 | 6870432 crazytechnician
crazytechnician's picture

Rates are going NEGATIVE

Thu, 12/03/2015 - 11:03 | 6870435 JustObserving
JustObserving's picture
How Devoted She Is To Americans' Interests

As much as insane McCain is interested in the health and happiness of Syrians. Or Erdogan is interested in the well-being of Russian pilots.

Thu, 12/03/2015 - 11:14 | 6870517 NotGrokkingIt
NotGrokkingIt's picture

Abolish the Fed and return to sound money if you are so concerned about Americans' interests!

Thu, 12/03/2015 - 11:16 | 6870520 semperfi
semperfi's picture

Dear Janet,

Since you are so excited, please raise rates by 5% to prove your love for the exceptional citizens of America.

Pretty please.

Thanks!

Thu, 12/03/2015 - 11:18 | 6870537 Hohum
Hohum's picture

5% is good, as it would also cause a reduction in carbon dioxide emissions.

Thu, 12/03/2015 - 11:18 | 6870532 DontWorry
DontWorry's picture

Fuck you Yellen, you lying sack of shit

Thu, 12/03/2015 - 11:17 | 6870533 Sorry_about_Dresden
Sorry_about_Dresden's picture

Janet Felon is continuing her crimes unabated.

Thu, 12/03/2015 - 11:17 | 6870535 Sorry_about_Dresden
Sorry_about_Dresden's picture

Janet Felon is continuing her crimes unabated.

Thu, 12/03/2015 - 11:18 | 6870536 Guitarbill
Guitarbill's picture

Will someone kick this dough boy in the head please!!

Thu, 12/03/2015 - 11:23 | 6870573 MFL8240
MFL8240's picture

She is devoted to the Jewish banking interests and anything beyond that is an outright lie. Why the need to tell anyone her actions should be good enough.  She is a liar and everyone knows it.  Tell us how Lolyd Blankefien and Jim Dimon became Billionaires running banks that required taxpayer bailouts if you are for the American people Mr. Yellen?

Thu, 12/03/2015 - 11:25 | 6870584 _SILENCER
_SILENCER's picture

Yellen and her husband have an annuity that pays them $400,000 a year for life.

They want you in stupid 401Ks. They know what's best.

Thu, 12/03/2015 - 11:27 | 6870598 Racer
Racer's picture

She is as devoted to the American sheeple as a snake is to its prey

Thu, 12/03/2015 - 11:27 | 6870602 TheBeatles
TheBeatles's picture

All 1oz Silver coins are €12 @ EurGold

https://www.eurgold.eu/silver/silver-coins/

Thu, 12/03/2015 - 12:02 | 6870856 moratar
moratar's picture

Below spot price? Must be some fraud.

Thu, 12/03/2015 - 11:28 | 6870607 RadioFlyer
RadioFlyer's picture

Mr. Yellen believes that inflation, meaning prices that you and I pay for goods, are not high enough. 

 

Americans must pay more for everything.  Then the economy will be working correctly.

 

Thu, 12/03/2015 - 11:29 | 6870613 The best Sun
The best Sun's picture

Janet "destroyer of worlds" Yellen has a voice that makes me grind my teeth.
She has been well chosen as the blame hound in this play.

Thu, 12/03/2015 - 11:32 | 6870628 vnct
vnct's picture

F*ck Jelly is completly ignorant or she´s on a shit load of LSD & Rohypnol however I doubt this will help her get laid or make any of her expactations (fantasies) come true...

 


Thu, 12/03/2015 - 11:32 | 6870630 venturen
venturen's picture

Do I hear a ROAR FOR MOAR? Hell YA!

Thu, 12/03/2015 - 11:38 | 6870649 Duc888
Duc888's picture

 

 

 

One word you stupid fucking whore (bought and paid for).

 

Clawback

Thu, 12/03/2015 - 11:38 | 6870650 ejmoosa
ejmoosa's picture

Yellen is right in a way.

Under these economic conditions with the regulatory and tax code we have today, we are at the full allowable employment.

Unless something changes with both taxes and regulations, this is as good as it can get.

 

Thu, 12/03/2015 - 11:39 | 6870652 Canadian Made
Canadian Made's picture

I have a garden gnome that looks just like the her, used to like that thing, now, I piss on it every chance I get. Its the little things that bring me joy!

Thu, 12/03/2015 - 11:40 | 6870662 SharkBit
SharkBit's picture

Can you imagine being married to this bitch?  Can you just complete an understandable sentence, just for once.  Tip, delete about 99% of words you use in a sentence.

Thu, 12/03/2015 - 11:46 | 6870702 BiPolarFrenchman
BiPolarFrenchman's picture

Can we get a mass shooting at the Fed?

Thu, 12/03/2015 - 13:02 | 6870710 Zen Master
Zen Master's picture

What a BULLSHIT KISS-ASS-FEST this was! A total crock of SHIT!

Thu, 12/03/2015 - 11:51 | 6870745 Solio
Solio's picture

We may be able to keep our radiated organs.

Thu, 12/03/2015 - 11:57 | 6870815 OregonGrown
OregonGrown's picture

You DIDNT make that...... so NO!

Thu, 12/03/2015 - 11:55 | 6870780 escapeefromOZ
escapeefromOZ's picture

  Only Jews are devoted to USA interests in fact they have the monopoly of running the federal reserve (sarcasm here ), nobody does it better than the Jews ( to rip off the population with fake money ). 

 

Thu, 12/03/2015 - 11:56 | 6870794 OregonGrown
OregonGrown's picture

"Only a higher dollar can stave off inflation"..... WOW! 

What is going to happen when the dollar starts to fall because other countries are buying Yaun......... instead of dollars

 

Thu, 12/03/2015 - 11:56 | 6870800 HoserF16
HoserF16's picture

Paint a Turd (economy) any color you want honey, at the end of the day it's still a turd.

Thu, 12/03/2015 - 12:01 | 6870849 Able Ape
Able Ape's picture

RaiSE Rates?  Yeah, just like a person in the middle of the ocean can safetly drill holes through the bottom of his wooden rowboat...

Thu, 12/03/2015 - 12:03 | 6870861 larz
larz's picture

back slap fest for America's best and brightest leaders - I cant even care anymore Id rather have people with less college and more common sense in charge - truly painful and embarrasing to listen to these creatures

Thu, 12/03/2015 - 12:06 | 6870877 YouThePeople
YouThePeople's picture

The articulation of her thought process flows like molasses.

Thu, 12/03/2015 - 12:30 | 6871028 patrickhenry61
patrickhenry61's picture

And what flows out of the mouths of the Congressmen and Yeller is as solid as diareeha.

Thu, 12/03/2015 - 12:26 | 6871003 patrickhenry61
patrickhenry61's picture

AAAAAAAAAAAAAAAAAAAAH!!!!!!! HA HA HA HA HA HA HA HA HA HA HA HA !!!!!! And I look after the interest of my local drug dealer or bank robber!!! I needed a good laugh!!!! Thank you Congress and Madame Yeller for that great entertainment!!! What a show!!!!

Thu, 12/03/2015 - 12:33 | 6871045 BullyBearish
BullyBearish's picture

From THE CREATURE FROM JEKYLL ISLAND, objectives of the fed at inception and NOW

1. How to stop the growing influence of small, rival banks and to insure that control over the nation's financial resources would remain in the hands of those present;

2. How to make the money supply more elastic in order to reverse the trend of private capital formation and to recapture the industrial loan market;

3. How to pool the meager reserves of the nation's banks into one large reserve so that all banks will be motivated to follow the same loan-to-deposit ratios. This would protect at least some of them from currency drains and bank runs;

4. Should this lead eventually to the collapse of the whole banking system, then how to shift the losses from the owners of the banks to the taxpayers. THE CARTEL ADOPTS A NAME Everyone knew that the solution to all these problems was a cartel mechanism that had been devised and already put into similar operation in Europe. As with all cartels, it had to be created by legislation and sustained by the power of government under the deception of protecting the consumer. The most important task before them, therefore, can be stated as objective number five:

5. How to convince Congress that the scheme was a measure to protect the public.

Thu, 12/03/2015 - 12:39 | 6871087 california chrome
california chrome's picture

Janet live:  "IF WE RAISED RATES WE WOULD HAVE THE POSSIBILITY OF LOWERING RATES."

 

wtf?

Thu, 12/03/2015 - 18:29 | 6872951 moratar
moratar's picture

Yes, that stinged my ears like hell!.

I will kill your son so i can appologize to you.

That's insane!  INSANE.

Thu, 12/03/2015 - 12:53 | 6871152 Billy Shears
Billy Shears's picture

Muster a firing squad.

Thu, 12/03/2015 - 12:55 | 6871172 california chrome
california chrome's picture

No rate increase at x-mas:

Janet's admission of "slack in the labor market due to involunatary unemployment...
it remains highter than it ought to be in a full economy."

Go figure...

Thu, 12/03/2015 - 12:58 | 6871184 Billy Shears
Billy Shears's picture

With Wall St. at, or near, all-time highs is it any wonder people have dropped out of the labor force; Let them eat cake!

Thu, 12/03/2015 - 13:48 | 6871462 YesWeKahn
YesWeKahn's picture

If she is truely devoted to american interest, she should go work as a construction worker, car factory worker for a year, get fucked by other male workers and get feel of ass pain.

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