I think we're turning Japanese I think we're turning Japanese I really think so ... Dododododo
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Remember When A Fed Permadove Promising Perpa-ZIRP Sent Stocks Higher?[/h]
Submitted by Tyler Durden on 11/13/2012 - 15:48Janet YellenThere was a time when bears looked on with dread as a Fed Permadove and vice chair Janet Yellen cleared her throat in advance of delivering prepared remarks, knowing well the algos would go full liftathon retard as soon as the flashing red highlights hit the screen. Well, Yellen did just that in a speech titled "Revolution and Evolution in Central Bank Communications" (
link here). Some of the highlights:
- YELLEN SAYS FED SHOULD LINK LOW-RATE OUTLOOK TO ECONOMIC GOALS
- YELLEN FAVORS ELIMINATING CALENDAR-DATE COMMITMENT TO EASING
- YELLEN WOULD LINK STIMULUS EXIT TO INFLATION, JOBS THRESHOLDS
- YELLEN SAYS 2% INFLATION SHOULDN'T BE CONSIDERED A CEILING
- YELLEN SAYS OPTIMAL POLICY FOR BALANCED APPROACH INVOLVES KEEPING ZIRP UNTIL EARLY 2016
And...
nothing. In fact, worse than nothing -
selloff! We have now gotten to a point where the Fed implicitly promising it may keep ZIRP until even longer than previously promised, or 2016, results in a coordinated dump.