The new
incoming Federal Reserve Chairman Janet Yellen is going to move the markets for
the rest of this week and has already sent the USD lower and the Kiwi and
Aussie Dollar higher this morning with comments in a speech on Wednesday
evening that said. "We have further to go to regain the ground lost."
The market has taken this as a remark that suggests the US Fed has no plans any
time soon to taper the stimulus program because the economy and jobs market is
still weak.
She
went on to say, "We have made good progress, but we have farther to go to
regain the ground lost in the crisis and the recession. Unemployment is down
from a peak of 10 percent, but at 7.3 percent in October, it is still too high,
reflecting a labor market and economy performing far short of their potential.
A strong recovery will ultimately enable the Fed to reduce its monetary
accommodation and reliance on unconventional policy tools such as asset
purchases. I believe that supporting the recovery today is the surest path to
returning to a more normal approach to monetary policy."
Yellen
has always been considered to be a Dove, in other words in favour of the
stimulus remaining and these comments are likely to dominate the markets for
the balance of the week.
For the latest LTG GOLDROCK REVIEW commentary on what the Banks are saying go to www.LTGGoldRock.com
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