Seeking Alpha

Yellen clearly best qualified for job, says Evans-Pritchard

  • "The Fed will be looser for longer. The FOMC will continue to print money until the US economy creates enough jobs to reignite wage pressures and inflation, regardless of asset bubbles, or collateral damage along the way," says a giddy Ambrose Evans-Pritchard of the Yellen nomination.
  • The "dove" label is unfair, says Pritchard. Yellen pushed for pre-emptive hikes in the mid-90s as Greenspan fed the stock market bubble.
  • Ahead of the financial crisis, she was quicker to sense the systemic risk of the subprime crash than the rest of the FOMC. And after:  "Fighting a chorus of amateur alarmists who claimed that inflation was poised to take off," Yellen was an early and enthusiastic backer of QE.
  • A key Yellen speech from earlier this year requires study, says Pritchard, as it shows she's paying attention to the falling labor force participation rate, i.e. a headline UE print of 6.5% may not hold much "tightening" sway with her.
  • Emerging markets - which took a major hit from taper talk - may be set to benefit the most from a the longer and looser policies of Janet Yellen.
  • Overnight: India gained 1.3%, Shanghai gained 0.6%, and southeast Asia posted a nice advance.
  • Emerging market ETFs: AGEM, EEM, ADRE, SCHE, GMM, VWO, DEM, EWEM, PXH, PIE, EWX, DGS, EMLB, EDC, EET, EMSA, EDZ, EEV, EUM, TLTE, HILO, EELV, EEMA, EMFT, DVYE, FEMS, EVAL, EGRW, EMCR, IEMG, EMDR, EEME.
  • India and China: INDY, EPI, PIN, INP, INDA, INXX, SCIF, SCIN, INDL, SMINFXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP.
  • Seasia: EIDO, IDX, IDXJEPHETHD, TTF, TF.
Comments (4)
  • she is another idiot Keynesian who will do the same stuff because the FED has no options. Tapering or turning off the spigots will panic the market and further expose the fallacy of central economic planning.
    Yet, amazingly, the same market pundits will discuss how the FED can fix things when it cannot.
    The FED is the furthest thing from free market function. Free market economics is the only thing that works. The rest is an attempt to control markets and prices.
    Keynesians are morons and the FED is the ultimate creation, culmination, and continuance of our economic malaise..
    9 Oct 2013, 10:14 AM Reply Like
  • Very civil. This will do a lot to stimulate productive debate.
    9 Oct 2013, 12:07 PM Reply Like
  • I am not sure there will be a "boon" to any economy other than growing government more.

     

    @timbo Did you expect something different from this administration? That is a rhetorical question for I have a funny feeling you didn't. :-)
    9 Oct 2013, 11:53 AM Reply Like
  • "Administrations" don't matter if they're populist liars trying to buy votes like Bush or Barry. The American on mainstreet has been in a malaise for years, something academics like Bennie or Yellen cannot understand. The worst part is paying for these idiots and a bloated .gov police state via tax dollars!
    9 Oct 2013, 01:43 PM Reply Like
DJIA (DIA) S&P 500 (SPY)