Despite Janet Yellen's commitment to continue supporting the economic recovery the transmission system of government interventions is clearly broken. As STA Wealth Management's Lance Roberts [5] shows in the simple chart below, it has taken $35.17 of government intervention to generate $1 of economic growth over the past 5 years. More importantly, the rate of diminishing returns is increasing. In other words, it is taking consistently more dollars of intervention to create an incremental increase in economic growth.
[6]
In the meantime, as shown below, the continued liquidity programs from the Federal Reserve continue to boost asset markets towards more exuberant levels.
[7]
However, despite signs of a potential market "bubble" Janet Yellen clearly sees no such thing...