from Dan Norcini:
I thought that might be a catchy title because what happens across the markets, whenever we get one of these Fed Chair Testimony days, is more like what happens to Tokyo every time Godzilla goes on one of his rages.
Most people think they know what is going to be said and when the Fed Chair surprises or disappoints, then we get all sorts of market reactions.
The “surprise” today ( and I am hesitant to call it that) was that Janet Yellen and the rest of the Fed do not seem particularly worried about inflation. Ms. Yellen rightfully ( in my opinion ) pointed to the labor markets and the slack that remains in there. Frankly I wonder why anyone was the least bit surprised about that. It is widely known that while the labor markets are slowly, incrementally improving, they are anything but robust right now.
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