Yellen Supports Draghi's QE, Warns Of Heightened Volatility

Speaking from The Bank of France is crap-covered Paris, Janet Yellen stated that "bond purchases have ben effective", and encouraged Mario Draghi to print moar, noting "central banks need to be prepared to employ all available tools, including unconventional policies, to support economic growth and reach their inflation targets," but warned from the other side of the her two faces, that, "policy normalization will lead to heightened volatility."

This...

 

Effective?

Forget the Facts...

  • *YELLEN: FISCAL POLICY MAY BE MORE EFFECTIVE WHEN RATES AT ZERO
  • *YELLEN: RECENT ECB BANK STRESS TESTS IMPORTANT FOR CONFIDENCE
  • *YELLEN: SUPPORTIVE POLICY STILL NEEDED IN SLOW GLOBAL RECOVERY
  • *YELLEN: POLICY NORMALIZATION MAY LEAD TO HEIGHTENED VOLATILITY
  • *YELLEN: SPEED, TIME OF NORMALIZATION MAY DIFFER ACROSS NATIONS
  • *YELLEN: POLICY NORMALIZATION WILL BE IMPORTANT SIGN OF HEALING

As Bloomberg reports,

Federal Reserve Chair Janet Yellen said central banks must do whatever it takes if governments won’t use the public purse to invigorate economies struggling with low growth and below-target inflation.

 

“Central banks need to be prepared to employ all available tools, including unconventional policies, to support economic growth and reach their inflation targets,” Yellen said in the text to be delivered today at a Bank of France event in Paris.

 

...

 

“Given the slow and unsteady nature of the recovery, supportive policy remains necessary,” Yellen said in a reference to the aftermath of the global financial crisis.

 

...

 

“Central banks have been considered the only game in town,” he said. “We all know central bankers do not act in a vacuum.”

 

Yellen said bond purchases have been effective.

 

"With policy rates at or approaching zero, central banks of necessity turned to unconventional policy tools such as large-scale asset purchases,” she said. “These unconventional tools have, in my opinion, served to support a recovery in domestic demand and, as a consequence, global economic growth.”

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She sounds desperate...