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Yellen let the cat out of the bag

Posted on 5/4/21 at 9:39 pm
Posted by TDFreak
Dodge Charger Aficionado
Member since Dec 2009
7343 posts
Posted on 5/4/21 at 9:39 pm
Said what Powell would dare not say before Congress. They do expect inflation and do expect to have to raise interest rates sooner rather than later.

We’re one big jobs report away from a healthy correction in the market and a leap in treasury rates.
This post was edited on 5/4/21 at 9:41 pm
Posted by HailToTheChiz
Back in Auburn
Member since Aug 2010
48866 posts
Posted on 5/4/21 at 9:40 pm to
Yep. At least I have a long ways until retirement
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80742 posts
Posted on 5/4/21 at 9:40 pm to
quote:

They do expect inflection and do expect to have to raise interest rates sooner rather than later.
Prepare your anus if they actually do this. It is going to be bad news bears, at least short term, for the markets.
Posted by TDFreak
Dodge Charger Aficionado
Member since Dec 2009
7343 posts
Posted on 5/4/21 at 9:42 pm to
The fact she went on air this evening to walk back her remarks is telling. The big banks probably haven’t finished reallocating out of stocks before she sounded the alarm.

Typical ding-dong Biden cabinet member.
Posted by TDFreak
Dodge Charger Aficionado
Member since Dec 2009
7343 posts
Posted on 5/4/21 at 9:50 pm to
Let me add, it won’t be raising rates that causes the correction. It will be the Fed tapering back on asset purchases resulting in a lot less artificial demand for equities

Downvote away my friends.
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 5/4/21 at 9:50 pm to
Shiiiiiiiiiii
Posted by slackster
Houston
Member since Mar 2009
84579 posts
Posted on 5/4/21 at 9:54 pm to
quote:

The fact she went on air this evening to walk back her remarks is telling. The big banks probably haven’t finished reallocating out of stocks before she sounded the alarm.


You’ve got it all figured out.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
35277 posts
Posted on 5/4/21 at 10:22 pm to
quote:

Said what Powell would dare not say before Congress. They do expect inflation and do expect to have to raise interest rates sooner rather than later.


Yea Powell has been coy on the interest rates, but he's said for months now that inflation is expected.
Posted by thatguy777
br
Member since Feb 2007
2384 posts
Posted on 5/4/21 at 10:59 pm to
Hate to tell y'all this, but the market has priced this in. Fed has been saying the same thing for months, the market has been trying to force them to do something.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11060 posts
Posted on 5/4/21 at 11:31 pm to
They want rates to rise in the long end of the curve. It's a good thing for everybody and should be cheered on.
Posted by FahQue
Member since Jul 2020
429 posts
Posted on 5/5/21 at 1:09 am to
:you don't say:
Posted by METAL
Member since Nov 2020
1038 posts
Posted on 5/5/21 at 6:13 am to
So sell my rental home now... Got it.
Posted by jangalang
Member since Dec 2014
36184 posts
Posted on 5/5/21 at 7:01 am to
quote:

Let me add, it won’t be raising rates that causes the correction. It will be the Fed tapering back on asset purchases resulting in a lot less artificial demand for equities

This is correct. I have to imagine next fiscal year there are changes.
Posted by Auburn1968
NYC
Member since Mar 2019
19260 posts
Posted on 5/5/21 at 7:59 am to
Inflation is usually delayed by 6 months or so after the events that trigger it.

Did some shopping at BJ's yesterday. What was usually $18 was now $26 with that kind of ratio up and down the line with few exceptions.

Posted by RebelExpress38
In your base, killin your dudes
Member since Apr 2012
13473 posts
Posted on 5/5/21 at 8:06 am to
quote:

We’re one big jobs report away from a healthy correction in the market and a leap in treasury rates.



They will do everything in their power to prevent this from happening before the midterm elections IMO.
Posted by Jag_Warrior
Virginia
Member since May 2015
4069 posts
Posted on 5/5/21 at 9:14 am to
quote:

They do expect inflation and do expect to have to raise interest rates sooner rather than later.


That’s fine. And it would be worth noting if the statement came from J. Powell. But Yellen has little to do with fiscal policy and nothing to do with monetary policy.
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