Janet Yellen walks back hawkish vibe

The recovery still feels like a recession to many Americans, she tells a Chicago audience in a speech focused in-part on why the lower unemployment rate is overstating the strength of the labor market.

The "overall commitment to maintain extraordinary support for the recovery for some time to come" is a strong one, she says. "The scars from the Great Recession remain, and reaching our goals will take time."

Stocks move to session highs, the S&P 500 (SPY +0.9%).


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Comments (9)
  • Budavar
    , contributor
    Comments (1418) | Send Message
    Yellen I believe KNOWS


    1. The unemployment statistics are manipulated, grossly underestimating the number of jobless folks AND
    2. Continued tapering will accelerate the date when the dollar will lose its status as the global Reserve Currency.(This is not an IF, its a WHEN).


    Is this not a classic case of being between the rock + the hard place?


    But while the dollar (Rome) burns
    Wall Street fiddles = the market is up.
    31 Mar 2014, 10:13 AM Reply Like
  • Captain Pike
    , contributor
    Comments (890) | Send Message
    The dollar, if it faces any trouble, is from DC budget follies and not the Fed's easing. When a real admin takes over in a couple of years, the dollar will be happy.
    31 Mar 2014, 03:27 PM Reply Like
  • neobliviscar
    , contributor
    Comments (263) | Send Message
    Perish the thought that Yellen might be an Uber Dove. It is best to be loved and feared, but if you must be only one: it is better to be feared. No one fears the Yellen.
    31 Mar 2014, 10:13 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13619) | Send Message
    I fear her stupidity and her lies. her talk tough and raise interest lies came only a week after her talk zirp forever tale. And her dovish comments today is only 2 weeks later shaking the market saying she is happy with higher interest rates even if the market slows and unemployment should be separated from higher interest rate increases.


    It's better to shut up than to persistently lie, deceive, and inveigle. Even then, we all know she's a super dove and would like to live out her term giving away candy to the bankers her entire term.
    1 Apr 2014, 03:41 AM Reply Like
  • mobyss
    , contributor
    Comments (2653) | Send Message
    Gee, you don't say?


    The Fed will ZIRP for many many more years. There is no recovery except for Wall Street. Labor participation is plummeting, and the Fed knows that without free money to the banks (a small portion of which gets lended out into the real economy) the country would still be in a very deep recession.


    They'll continue ZIRP for 10, 15, 20 years like Japan and wonder why it's not working.
    31 Mar 2014, 12:10 PM Reply Like
  • financeminister
    , contributor
    Comments (1230) | Send Message
    If my economic life was a white pawn on a chess board, I would like to be one of those corner pawns that have a better chance at getting promoted.


    If I would be a white surf pawn (.i.e a "surf" pawn over a "soldier" pawn). The rest of the major and minor pieces are the elites


    Queen: The Feds would be the queen
    King: The administration in power would be the king
    Bishops: In chess, these are also known as "councellors to the King". Democrats and Republicans of either color fit this description
    Knights & Rooks: The Calvary - the powerful elite, big corporations, wall street, the top 10% would be the rooks


    The Black side would be the various shenangans of the economy - taxes, interest rates, regulations, jobs or lack off etc.


    As a surf pawn in the corner of the board, I am invested in the markets with the hope that I would be able to drag myself one square at a time to the otherside in the midst of this (economic) warfare. The hope of every pawn is to reach the otherside and get promoted while the soldier pawns are willing to sacrifice themselves... these are the lemmings on the center of the board who with much gusto will take the first leap two squares at a time to control the center and hold strong for their king and queen as the battle starts. They will be big supporters of the administration, the feds and even lend a helping hand to the bishops and knights. Little do they realize that the elites (feds, administration, the bishops, knights and rooks) need them in the center of the board as far as their objectives of gaining control of the board are reached... so initially a soldier pawn or two will be sacrificed (king's gambit, queen's gambit) or provide great support for a knight and once the administration does gain the control of the center, the rest of the elites will manevour and jump around to these squares and the rest of the soldier pawns will eventually be exchanged for the "greater good"... if not exchanged, they will be used to protect the king (castling... note that one rook (corporate elite) will always be beside the castled king)


    Meanwhile, I, as a surf pawn, hope to be on one of the less active corners of the board so I have a lesser chance of being killed in the battle while I drag myself to the otherside (through the squares of school, college, and the career ladder). I hope to eventually get promoted from a pawn to something better on the board so I have more options to move around instead of just one square at time only in one direction.


    While all that happens while I'm trying to get to the other side, I hope my king and quenn will not have me sacrificed, exchanged or worse, blundered to the shenangans of the economy.
    31 Mar 2014, 12:50 PM Reply Like
  • neobliviscar
    , contributor
    Comments (263) | Send Message
    And here I thought Vladimir Nabokov was dead....
    31 Mar 2014, 01:47 PM Reply Like
  • kimboslice
    , contributor
    Comments (1817) | Send Message
    I knew it.
    31 Mar 2014, 02:08 PM Reply Like
  • NUNAY the KING
    , contributor
    Comments (308) | Send Message
    Yellen, at least in the sound bites presented here, spoke the truth. You can't fix the problem without at least admitting what the problem is, which she did. Now lets see some more people step up to the plate and take the proper corrective action.
    31 Mar 2014, 04:22 PM Reply Like
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