Investing.com - Financial Markets Worldwide

Janet Yellen's Fed Nomination: Will It Calm The Markets?

ByCumberland Advisors
AuthorDavid Kotok
Published 10/09/2013, 03:29 AM
Updated 05/14/2017, 06:45 AM

News reports of Janet Yellen’s forthcoming nomination will be greeted well by market agents. It should be. They will assume a continuation of the Bernanke policy. They will also assume gradualism when it comes to Fed tapering which is now likely to be delayed because of the budget, debt-limit fight’s damage to the US economy. The US economic recovery is losing steam daily.

Yellen is highly skilled, seasoned and a veteran of the financial crisis. She certainly does not want another one to occur on her watch as chair of the Federal Reserve.

Any market calming effect will be short lived. Markets are focused on the political fight and are also sensitive to the damage each day of the political fight does to the US economy. Yellen knows this. She cannot do anything about it except to proceed slowly on any tapering policy.

So Fed policy becomes more predictable with the announcement of her appointment while Congress and the White House continue to add fuel to the fire that burns the modern day version of Rome which we call Washington.

We remain with a cash reserve on the sidelines. We like Janet Yellen and wish her well. She cannot fix the dysfunction at the other side of the Washington where the congressional fight with White House continues.

BY David R. Kotok

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.