Yellen\’s Perfect Hedge

Janet Yellen spent most of the day testifying on Capitol Hill and, once again, she placed the perfect hedge. Dr. Yellen said she is aware of the broader risks that may adversely affect the economy. Even with those risks, she did not directly take future rate hikes off the table. What does that mean for all of us? Put simply, she remains “data dependent.” This is Yellen’s classic modus operandi. Adopting a “data dependent” stance, gives her room to move anyway she wants in the future. In fact, since she became the Fed Chair, Dr. Yellen has largely adopted a “data dependent” stance. This is her way of placing, what I call, The Perfect Hedge.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s