Yellen to get the White House nod next week?

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  • The White House has apparently been calling around Democratic senators urging them to speak up in favor of Janet Yellen should there be any criticism of her that might arise as Federal Reserve chair nominee.
  • Commentators are also saying the the cancellation of a speech from her which was scheduled at the Economic Club of New York for October 1 is another indication the White House will nominate her for the position.

I’ve seen some comments from analysts who expect the nomination to occur as early as Monday ( September 23).

Janet Yellen

Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.

2013-09-21T06:45:35+0000

All|Asia Pacific|Central Banks

Federal Reserve|yellen

Eamonn Sheridan

2 Comments

  1. After this past weeks action upon reflection these thoughts come to mind.
    As a trader what is traded is generally more important then how it is traded.
    We have a situation in currencies where there appear to be three groupings/categories of currencies at the current time.
    Market based free floating.
    GBP : Reserve currency, Broad Based economic structure, emphasis on Service
    CAD: Commodity based with Industrial and Service, growing as a Reserve, subject to offhand verbal intervention.
    AUD: Commodity primary with Industrial and Service, growing as a Reserve
    NZD: Commodity, Service, Growing Safe Haven small liquidity

    Semi Market Based Free Floating
    Euro: Reserve, Broad Based economic structure, subject to verbal intervention/forward guidance
    considered a Hard currency but that may change depending upon the outcome in German elections
    CHF: Safe Haven, subject to the SNB Peg limiting it as a free floating currency, trades well as long as above the Peg limits

    Handicapped Market Based currency
    USD: Former major World Reserve currently subject to wild fluctuations due to constant Central Bank intervention. If one is tiring of having to decide if the FOMC Chairperson had eggs or pancakes for breakfast and the implications of such as to the days currency valuation.
    Once preeminent market based free floating, now completely unstable requiring psychoanalysis of central committee members before trading.
    Central Planners are now painted into a corner as a Bank Bailout cloaked as a General economic support policy has morphed into a complete Market dependency upon the printed USD

    JPY: Heavy Central Bank intervention also requiring psychoanalysis of Government leadership before trading.
    Free Floating except when it is not.

    CNY: Totally controlled, Pegged, claims not to manipulate for economic mercantilism purposes.

    This post may have some soundness as to underlying results. Perhaps some sticky points but intended as food for thought. If one intends to Trade by choice of whether or not to trade a Free Floating currency or one subject to unknown political intervention/crony capitalism criteria.

    Unfortunately the currency markets have arrived at a point of time where a Trader without inside Political contacts, being without the means to Buy inside information, it is difficult to Trade rationally.
    For those who still believe in Free Markets, choice of a free floating currency combination will maintain your mental health.

    As the above article suggests it is all about political and philosophical bent and little to do with economic analysis concerning FOMC/USD

    It would be naive to say there is never a factor of politics involved with choosing people to fill positions, but it is now the dominant criteria as to furthering agendas rather then choice by merit.

  2. If my post has a tinge of rant in it, so be it.
    Thanks anyway

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