It would appear The Fed is in panic mode. According to two "people familiar with her comments" - who asked not to be named because the meeting was private last weekend:
- *YELLEN SAID TO VOICE CONFIDENCE IN EXPANSION AMID FOREIGN RISKS
Of course, this is now the last thing that markets want to hear since it means she is less likely to unleash QE4.
As Bloomberg suddenly reports,
Federal Reserve Chair Janet Yellen voiced confidence in the durability of the U.S. economic expansion in the face of slowing global growth and turbulent financial markets at a closed-door meeting in Washington last weekend, according to two people familiar with her comments.
The people, who asked not to be named because the meeting was private, said Yellen told the Group of 30 that the economy looked to be on track to achieve growth of around 3 percent going forward. She also saw inflation eventually rising back up to the Fed’s 2 percent target as unemployment falls further, according to the people.
Yellen’s reported remarks were roughly in line with the forecasts presented by Fed policy makers at their last meeting in September. They saw the economy growing by 2.6 to 3 percent next year and inflation rising to 1.7 to 2 percent in 2016, according to their central tendency forecasts, which excludes the three highest and three lowest projections.
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The problem is - that growth narrative is busted now... and the only thing to save stocks, simply, is more QE (which means fear, moar fear, and utter terror at growth prospects and market losses)
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Simply put, here's why no one cares how confident she is...
Because they are terrible forecasters... all the market needs is moar free money.