The Yellen Destiny
The government shutdown and the debt ceiling are off the minds of traders, at least for another few months. Now the markets can turn to more fundamental factors such as earnings, jobs and Gross Domestic Product (GDP). Well, at least that’s what many would like to think is moving the markets.
What many people think, including me, is that the markets are being driven largely by the “Yellen destiny,” meaning that the smart money is betting that Fed Chair nominee and current Vice Chair of the Federal Reserve, Janet Yellen, will be even more aggressive than her predecessor when it comes to stepping in to try to spur economic growth.
In some economic circles, the theory is that Yellen may actually increase the Fed’s current bond-buying scheme, also known as quantitative easing, or QE, rather than “taper” QE as Mr. Bernanke alluded to in May.
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