The headlines tell the story. Consecutively on Bloomberg, this morning’s headlines read, “Gold advances after Yellen Signals Rate Increase Isn’t Imminent”, “Emerging Market Stocks Set for 3-month High as Fed Shows Rate Patience”, “Yellen Keeps Us Guessing”, and “Yellen Indicates that Interest Rates Rises Are Coming”...
Yellen was in front of the House Finance Committee today. Her prepared remarks were a carbon-copy of yesterday’s. The Q&A tended towards discussions of the structure of the Fed and its relationship to Congress. Should the Fed be audited? Is the Fed too independent? Is the Fed politically biased?