Yellen Does Some Yelling

By David Bahnsen

Janet Yellen, Chair of the Federal Reserve
(Photo by Day Donaldson) (CC BY) (Resized/Cropped)

If I were to think back to much of the focus of the last eight years in capital markets, through three rounds of quantitative easing in the United States, through the creation of terms I never thought would become common vernacular (“Operation Twist”, anyone?), and certainly through the exhausting discussions about what would happen with the Fed’s zero interest rate policy (“ZIRP”), it really is almost refreshing that the 2016 election cycle and 2017 political world was so successful in “trumping” monetary policy as the dominant driver of [alleged] market news. We went so many years where barely nothing mattered but central banks, that it almost seems surreal that American politics so completely replaced that narrative in assessing the daily lay of the land. But the Fed has made a comeback as of late, along with their counterparts at the European Central Bank and the Bank of Japan, etc. Central banking is back, baby. And while monetary policy as a flashy news cycle is not likely to be as fun as President Trump’s tweets, it is highly likely to be much more relevant to …read more

Source:: Affluent