Friday's session started off promising, as Yellen gave the market no definitive answer about the next rate hike. Judging from the early reaction, with the US Dollar getting clubbed .5% lower, while stocks and bonds rallied, the market took this as another confirmation that the FED's easy money policies aren't going anywhere fast.
It's an hour until Yellen and all through the market, banks had lots of cash but no where to park it. Yields were too low, too stock prices at record highs, this has to fall apart at some point, why should I buy?
The market is safe, they said with a grin Lehman is gone and Enron is a has been. So hold up your nose, and nod your big head, just buy up those stocks, volatility is dead.
This Friday at 11 A.M est, Janet Yellen speaks. There is a very good chance it will move the market.
U.S. Fed Chair Janet Yellen speaks at the Kansas City Fed’s annual Monetary Policy Symposium in Jackson Hole, Wyoming. Minutes from the Federal Open Market Committee’s July meeting showed officials were split on whether an increase was needed soon. 09:00 local time (11:00 EDT)
