Ok, she folded under the pressure. Being a compassionate person, feeling sorry for the poor Wall Street Bond trader delaying his weekend trip to the Hamptons, Fed Chair Yellen answered the question we were all waiting to hear during her interview today with Harvard professor Greg Mankiv.
Are you supportive of a rate hike in the coming months?
What did you hear and what key words did you take out of her response?Let me give you a little help and politely share my perspective on what she said.
The first thing I noticed was that the dollar rallied as she spoke and gold sold off. Not good for the yellow metal as we broke the key spot level of support at $1,215.40. Market now takes on a sell bias once again.
But even though she seemed to convey a HAWKISH tone, she was still not convincing.
She used words like “cautious” and “data dependent.” Yes, she did say the economy is improving. I can argue that point if I may be so bold, seeing corporate profits down and business investment also falling by the wayside. Did we all forget about bad state of the economy in Europe?
Today we seen a revised first quarter US GDP growth of .8 percent reported. I’m not impressed with the revision. I’ll continue to stand my ground and wait till I see “THE DATA” on where and how our economy is improving. In the meantime nothing has changed.
Just a heads up. I would advise monitoring the Gold CME opening Sunday night to see what reaction the rest of the world has to her comments as they resume trading.
Regards and wonderful weekend to all.
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