Yellen Goes on Record: The Fed's Pulling the Plug This Year

Phoenix Capital Research's picture

The Fed keeps ringing bells to signal the top, but the markets aren’t listening.

Janet Yellen is set to present the Fed’s Monetary Report to Congress this week. Her remarks have already been posted online.

The results aren’t pretty.

Valuation pressures across a range of assets and several indicators of investor risk appetite have increased further since mid-February...

The Committee currently expects to begin implementing the balance sheet normalization program this year provided that the economy evolves broadly as anticipated...

Source: Federal Reserve

Firstly, Yellen is CLEARLY warning that the Fed sees bubbles in the system. For a Fed Chair to specifically cite “valuation pressures” in the markets is simply incredible… particularly when you consider that the Fed has been actively propping up stocks for the better part of eight years.

Secondly, Yellen reiterates the Fed’s intention to begin normalizing its balance sheet this year. This is an absolute game changer for the markets as it marks the first time in a DECADE that that FEd will be actively withdrawing liquidity from the system.

What does all of this mean?

The Fed is getting ready to pull the plug on the markets.

What does that mean for stocks?

We're going to have the 3rd and worst crisis in 20 years.

A Crash is coming…

And smart investors will use it to make literal fortunes.

We offer a FREE investment report outlining when the market will collapse as well as what investments will pay out massive returns to investors when this happens. It's called Stock Market Crash Survival Guide.

We made 1,000 copies to the general public.

As I write this, only 29 are left.

To pick up one of the last remaining copies…


Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research




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stolich_naya's picture

Who benefits from this?  The Fed can't possibly balance its own balance sheet as they've been planning both sides for years.  And why the turn around now?  Do they know something we don't?

Charvo's picture

It looks and feels like the long treasury bond is getting pushed down in order to get interest rates high enough to break this stock market.  The question is how much the Fed has to push treasuries down in order to make it attractive vs stocks and corporate bonds.

Too-Big-to-Bail's picture

Phoenix Capital goes on record: We are officially click-bait

Grandad Grumps's picture

They keep saying there will be a crash, but the banks control price and they keep the prices up. The Fed is just a tool of the global banking system. It does not control it.

ali-ali-al-qomfri's picture

what is the sound of a butt being removed.......just wait you'll hear it.

luna_man's picture


"Free Investment Report"...Now you know Graham, if it was worth it's weight in print, IT WOULDN'T BE FREE!


Always nice to read your print anyway

passerby's picture

Or did the economy pull the plug on the fed...?

AlbertthePudding's picture

I suggest Trump beat her to the punch! Pull the plug on the Fed.

Dead Canary's picture

Trump is now in office. Not only CAN they pull the plug, the WANT to.

Paving the way for "Chelsea Clinton 2020".  God help us all.

bobert727's picture

I have to laugh everytime I hear the "Chelsea Clinton" name floated.


She has no experience at anything. Political,military, business. Zero. None.


She's never run for any office, ran any business, or done a decent days work in her life.


And somehow she is qualified to be President? Really?


JailBanksters's picture

When your ""Connected"", you don't need any experience at anything.

What I'm saying is, say Hello to your Future President.

Roger Rabbit's picture

Exactly. She's a typical fucking millennial.

Lynn Trainor's picture

You might as well have said, Obama 2020.

SidSays's picture

The Federal Reserve is Above the Law

You were warned...

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." - Thomas Jefferson


knotjammin2's picture

Nothing here a violent uprising by the people can't fix.  It worked for Thomas Jefferson and his friends.  It will work today too.  Nothing sets the mood better than a few dead bankers hanging from lamp post.

Roger Rabbit's picture

Get fucking real. They didn't have cheese in a spray can, endless free porn, the internet, and tons of booze and drugs and "entertainment" to keep them narcoztized and distracted.


The "revolution" simply will never be televised. Sorry man. We're all fucked..

Snaffew's picture

these markets blow dogs for quarters---zro volatility, all complacency and the patient has flatlined.

Maximeme Q's picture

While I agree with your conclusions, I'm confused by some of your terminology. What's a 'market'?

mary mary's picture

No Free Market, all Janet Yellen.  The Goddess.  More powerful than God.

knotjammin2's picture

Like the greek gods, Yellen will fall from grace and when SHTF it will be every banker for himself. 

LawsofPhysics's picture

LOL!!!  Sure, sure...

The Fed, like the FRN, is quickly becoming irrelevant.

XBroker1's picture

"We made 1,000 copies to the general public.

As I write this, only 29 are left."


If they're going that fast, why even bother writing? lol

tobynfsy's picture

Phoenix Capital as been saying this for, at least, the past two years.

Bunch of loosers...

Dame Ednas Possum's picture

In my mind a "looser" is someone who doesn't know the difference between loser and looser. 


Anon2017's picture

Spam pretending it's news.

JamesBond's picture

Its a sponsored story that is located at the top of ZH so you already know when you click.



Solio's picture

Look distortions in the whatonomy.

LostAtSea's picture

No one listens to the Fed anymore because they have lost their credibility.  

Ricki13th's picture

Trust me they will listen if and when Yellen start to take away free money. Early August the markets will top. 

Osmium's picture

Similar to Mr Summers here?

silverer's picture

"...provided that the economy evolves broadly as anticipated..."

Who's making that call? Gartman?

The Gun Is Good's picture

Ha! Yeah....

Economy "evolves?"  Devolves, more like....

MrBoompi's picture

We really haven't been able to believe most of what the Fed Chairmen have told the public for 100 years so there's no reason to start believing them now.  One thing they will never pull the plug on is bailing themselves out.

Nobodys Home's picture

Cover the inside of her nose and ears, her eyes and her lips with honey...
Then bury her up to her neck in a nest of fire ants!

bigkahuna's picture

the fed can pull my finger

Never One Roach's picture

The market distortions only get worse the more the Fed aits to correct. However, in the mantime, bankers are getting filthy rich.

JailBanksters's picture

There's only 2 things wrong with the satement:

It contains "expects" and "provided" in the same sentance.

So there's a Way-In and an Escape-Route at the same time.

Gawd, talk about hedging your Bets,  they're hedging their statements.

The statement is pointless, provided something does happen and doesn't happen.

What kind of Efing Nonsense is this, or is this what they call "Guidance"


Iconoclast421's picture

Actually it will be a rate cut that signals the top. Check your history!

doctor10's picture

the more nationalist Trump gets, the tighter the policy...the more globalist....the looser. Bush and 'Bammy understood that

That's all the Fed and ECB are about-easy money to facilitate the NWO

auricle's picture

Someone should pass that SPX chart out to a group of 6th graders with space to the right and ask them to draw the continuation they think is most likely to occur. Then ask a group of college graduates to draw the continuation they think is most likely to occur. I would really like to see the results.