Macro Digest: Ms. Janet Yellen - The next Fed Chairman a closer look

Dear All,

 

Attached is a deeper portrait of Ms. Janet Yellen – I wish I could take the honor of having written it but… it's my intern Marcus Henglein, Oxford University, who wrote it. I found many new and useful angles on what to expect from Yellen. She is very dovish, Keynesian, but also intellectual honest.

 

She will be a steady pair of hands having work at the Fed since the 1970s but she is likely to be supporting a model, Fed, which is increasingly losing its way, reduced to "talking to the market".

 

Driving to work this morning I had to laugh:  Why is it Fed thinks they can "forward guide" the market? Since when have talk been worth anything?  No, Fed, ECB, and BOE soon will realize it's what you do that matters not what you say and that may prove to be the real problem.

 

Nice week-end

 

Steen

 

Med venlig hilsen  |  Best regards
Steen Jakobsen  |  Chief Economist

 

Saxo Bank A/S  |  Philip Heymans Allé 15  |  DK-2900 Hellerup
Phone: +45 39 77 40 00  |  Direct: +45 39 77 62 23  |  Mobile: +45 51 54 50 00

 

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