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Yellen: QE could end this fall; rate hikes maybe 6 months later

  • Hanging in there in the face of a seemingly hawkish lean to the FOMC statement and economic projections, stocks steepen their decent as Janet Yellen says QE should end some time this fall (as opposed to December). Asked to define the "considerable period" between the end of QE and the first rate hikes, Yellen says, "Something on the order of six months."
  • S&P 500 (SPY-0.9%, Nasdaq 100 (QQQ-0.9%, DJIA (DIA-0.9%.
  • The 10-year Treasury yield is now 11 bps higher to 2.80%. TLT -0.8%, TBT +1.6%
  • Earlier coverage
Comments (19)
  • davidshelton
    , contributor
    Comments (310) | Send Message
     
    If there was ever any doubt about the direction of QE......
    Meanwhile the patient begins to twitch nervously as Dr. Yellen finishes administering some bad news about the removal of his monthly financial heroin.
    19 Mar, 03:30 PM Reply Like
  • nytex
    , contributor
    Comments (29) | Send Message
     
    Dr. Yellen is NOT a man.
    19 Mar, 03:57 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    nytex, might have to get Crocodile Dundee to run a test before I believe that.
    19 Mar, 04:00 PM Reply Like
  • MrVic
    , contributor
    Comments (38) | Send Message
     
    I think he was referring to the "patient's monthly dose", not the doctor's.
    19 Mar, 04:03 PM Reply Like
  • davidshelton
    , contributor
    Comments (310) | Send Message
     
    The patient is a man for want of a better expression.
    19 Mar, 04:17 PM Reply Like
  • Deney_Terrio
    , contributor
    Comments (246) | Send Message
     
    Rad,
    Very witty!
    19 Mar, 06:57 PM Reply Like
  • Jake2992
    , contributor
    Comments (825) | Send Message
     
    Doesn't this mean the gloom and doomers were wrong? They said Yellen would never be able to stop QE or raise rates because it would cause global economic meltdown. Or has the goal post moved again?
    19 Mar, 10:19 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    Jake, FYI – QE has not ended and rates have not been raised.
    20 Mar, 05:30 AM Reply Like
  • Topcat
    , contributor
    Comments (412) | Send Message
     
    Yes, and that is a good thing, as it means the underlying economy (granted, it is a "new" economy due to globalization and technology automation, which affects unemployment (and thus more of it, which, to the delight of employers, keeps wage pressure down except for some in demand specialities that can't be outsourced)) is steadily improving. Which is good for the market in the long run.
    19 Mar, 03:52 PM Reply Like
  • yliu54
    , contributor
    Comments (170) | Send Message
     
    oh, my great privilege to know this, my lady. I thought this would only be shared with a few big MMs. Btw, we will have good weather.
    19 Mar, 03:58 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (998) | Send Message
     
    I'd argue that a higher rate of unemployment is ultimately a negative. Societies where distributional conflict is more noticeable tend to result in economic policies that divert capital away from growth promoting activities. (Persson and Tabellini, 1991)
    19 Mar, 04:18 PM Reply Like
  • rick mule
    , contributor
    Comments (42) | Send Message
     
    This country works best at 4.5 percent unemployment if we could the government out of the way we will get there!
    19 Mar, 04:45 PM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    If we got the government out of the way we would only have 4.5 unemployment in depressions. But then, if we got rid of central banks, we might not have any depressions. There is no such thing as the "business cycle" the central bankers talk about. Ford can run a pickup off the end of the assembly line every X seconds until the cows come home, but they can't sell them when the Fed raises rates. It is a banking cycle, not a business cycle. Get rid of the Fed and you get rid of most of the problems, since they caused most of them.
    19 Mar, 10:48 PM Reply Like
  • TPF1115
    , contributor
    Comments (9) | Send Message
     
    SHELDON:
    The entire basis for the market to keep going up, despite data pointing to
    a slowing world-wide economy, has gone away.
    The FED has been holding up a market that should have headed down
    for too long now. The bull has had it.
    19 Mar, 04:45 PM Reply Like
  • Deney_Terrio
    , contributor
    Comments (246) | Send Message
     
    Careful TPF... That kind of talk gets people in trouble around these parts.
    19 Mar, 07:02 PM Reply Like
  • snoopy44
    , contributor
    Comments (641) | Send Message
     
    Why in the world would you hint at raising rates when the last 3 CPI reports have been below estimates? In other words if inflation is not showing in the economy why would you need to raise rates? This is exactly the same mistake the Fed repeats over and over. They overtighten too early and overloosen too late. Their sense of timing is awful.
    19 Mar, 04:56 PM Reply Like
  • Jake2992
    , contributor
    Comments (825) | Send Message
     
    I think we can safely say rates won't be "high" for many many years.
    19 Mar, 10:21 PM Reply Like
  • Camera Check
    , contributor
    Comment (1) | Send Message
     
    I watched the press conference. She answered off hand after some stumbling and said "six months or something like that". She then followed "depends on the data of course". The nutty high freak jocks had already pressed the button like they did with Bernanke last May.
    19 Mar, 11:28 PM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    Oh no. A full term with a leader with foot in mouth disease. We need to just get rid of the Fed a/k/a banker's cartel. A zillion transactions a day will set interest rates by themselves.
    22 Mar, 01:22 PM Reply Like
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