Waiting on Yellen
Over the past three weeks or so, stocks in the United States basically have been in a holding pattern. The benchmark S&P 500 Index essentially has flatlined of late. Part of the reason for that leveling off is the tentative approach traders are taking to the new Fed Chair nominee, Janet Yellen.
While most observers seem to think that Yellen, who currently serves as Vice Chair of the Federal Reserve, will be a “dove” when it comes to the central bank and the role that it plays in Wall Street’s quantitative easing party, nobody knows for sure what the prospective new Fed chief actually will do.
We’ll get the first glimpse of how Yellen comports herself, and about what she thinks of the current economic situation and the role she plays in the drama, tomorrow when she appears before the Senate Banking Committee for her confirmation hearing. I suspect the fireworks might be interesting, as many members, including outspoken Fed critic Rand Paul (R-KY), likely will be aggressive questioners to say the least.
Read more about the expectations for Janet Yellen’s actions as Fed chief and the rest of Making Money Alert at Eagle Daily Investor.