SocGen notes, Fed Chair Yellen will be honoured at Harvard, with a conversation on her achievements at the ceremony. However, little emphasis on the monetary policy outlook is expected at this event. The appearance to look forward to will be the Chair’s speech in Philadelphia on June 6, the Monday following the May employment report and a day before entering the blackout period for the upcoming FOMC meeting.
Live Feed (The event started at 1030ET with Yellen is due to speak at 1315ET.. though it appears they are running late)…
- *BERNANKE SAYS WE’RE LUCKY TO HAVE YELLEN LEADING THE FED
Headlines:
- *YELLEN: AMERICA OWES BERNANKE ENORMOUS DEBT OF GRATITUDE
- *YELLEN: CAPITALISM IS BEST ECONOMIC SYSTEM BUT CAN BREAK DOWN
- *YELLEN: WE WANT TO DO EVERYTHING TO HEAD OFF A FINANCIAL CRISIS
And this happened…
- *YELLEN: FED’S HANDLING OF FINANCIAL CRISIS WAS MAGNIFICENT
- *YELLEN: QE, FORWARD GUIDANCE HAVE HELPED ECONOMY RECOVER
- *YELLEN: WE DIDN’T SEE HOW HOUSING BUBBLE CREATED SYSTEMIC RISK
- *YELLEN: WE ARE TRYING NOW TO DO BETTER JOB OF SEEING RISKS
- *YELLEN: WE ARE FOCUSED ON SYSTEMIC RISK, FINANCIAL STABILITY
- *YELLEN: WE’RE BRINGING NEW MINDSET TO HOW WE OVERSEE BIG FIRMS
- *YELLEN: QUANTITY, QUALITY OF BANK CAPITAL HAS IMPROVED
And then she said…
- *YELLEN: ECONOMY IS CONTINUING TO IMPROVE
- *YELLEN: WITH GAINS, HIKE IN COMING MONTHS MAY BE APPROPRIATE
- *YELLEN: DON’T HAVE TYPICAL SCOPE TO CUT RATES IN CASE OF SHOCK
And this happened…
And so admitting that The Fed needs to raise rates to be able to cut rates has sent stocks lower…
