Yellen Rides Into the Sunset

From NFTRH 477:

Bring on FOMC! Aside from providing a potential exclamation point to the gold sector correction, this week’s (Dec. 13th) rate hike will serve as Janet Yellen’s last policy move. My personal opinion is that she has been the best Fed Chairman in my market-focused experience. She just humbly goes about her business in a measured way, unlike the constantly self-promoting inflator, Greenspan and the brilliantly evil (all in my opinion of course) inflator, Bernanke.

If she were to drop a Nuke on Trump’s stock market and the Republicans’ corporate welfare state, she’d go from being my least worst Fed Chief to my hero. I am not kidding about that. But alas…

90% of CME futures traders expect her to leave with a well and good ¼ point hike. But 10% of these wise guys are gambling on a ½ point hike. Wouldn’t that be something if she were to cook up a surprise like that for the markets?

cme group

Okay, out of the world of fantastic idealism to reality, after the Fed hikes ¼ point we’ll probably still be left with most market signals on their current trends. Let’s take a quick check on a few bond indicators and move on.

Side note: What an exclamation point that was on the gold sector, as anticipated. I took a quick JDST position (before the FOMC release) against miner positions held, and got lit up for a quick 4% haircut.

True to form, the ego restrained Yellen rode off without self-promotion or aggrandizement. Just noting that the economy is not likely to go gangbusters and will only experience modest and short-term impact from President Pumper (“we stand on the verge of a new economic miracle”) and the Republicans’ corporate tax giveaway. Her even hand has guided the Fed through a systematic and consistent(ly moderate) removal of Berananke’s myriad panic policies.

Now she’s gone, without having experienced the typical trial by fire of each Fed chief. Here’s Macro Tourist’s view of it (gee, where have I seen charts like this before?).

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