Janet Yellen: Hawkish On Stimulus

During yeaterday’s confirmation hearing for Janet Yellen, the Fed chair nominee made it clear that she supports continued economic stimulus:

When Janet L. Yellen speaks, Wall Street listens — and investors liked what they heard on Thursday.

The stock market reversed an early loss and moved steadily higher in the morning as Ms. Yellen, President Obama’s nominee to head the Federal Reserve, testified at her Capitol Hill confirmation hearing. Monitoring her poised performance from desks around the world, traders concluded that she would stick with policies that have sent shares soaring. The Standard & Poor’s 500-stock index closed at yet another nominal high on Thursday, up 25.6 percent so far this year.

Despite the run-up, Ms. Yellen also said that she did not believe that the trillions in stimulus money the Fed has injected into the financial system since the near collapse of the global economy had created a bubble, another very good sign of her supportive views as far as Wall Street is concerned.

“Stock prices have risen pretty robustly,” she said, but at current valuations, “you would not see stock prices in territory that suggests bubblelike conditions.”

By: dave-dr-gonzo

David Hirsch, a.k.a. Dave "Doctor" Gonzo*, is a renegade record producer, video producer, writer, reformed corporate shill, and still-registered lobbyist for non-one-percenter performing artists and musicians. He lives in a heavily fortified compound in one of Manhattan's less trendy neighborhoods.

* Hirsch is the third person to use the pseudonym, a not-so-veiled tribute to journalist and author Hunter S. Thompson, with the permission of his predecessors Gene Gaudette of American Politics Journal (currently webmaster and chief bottlewasher at Liberaland) and Stephen Meese at Smashmouth Politics.