Markets Rally For Sixth Week Weekly Update – November 18, 2013 All eyes were on the Senate confirmation hearings for Federal Reserve chair nominee Janet Yellen last week. The hearing didn’t generate any bombshells but confirmed Wall Street’s belief that the Fed will not be in any hurry to taper its bond-buying programs. Yellen also made it clear that under her leadership, the Fed will take on greater supervision of banks. Dodd-Frank regulations specifically task the Fed with protecting the financial system from risks that could spill into the broader economy – something called macroprudential regulation. Hopefully a Fed with sharper teeth can prevent a repeat of the financial crisis. Though current chairman Ben Bernanke spoke at a town hall meeting last week, he appears to be working on a graceful exit, as he made no specific comments about tapering or pending monetary policy decisions. Looking ahead, investors will be focusing their attention on a raft of economic data due to be released. Wednesday is particularly important as the meeting minutes from the most recent FOMC meeting will be released, hopefully giving analysts some insight into when the Fed may begin tapering. While a December taper is still possible, most Fed analysts expect the Fed to delay until the New Year.
Posted on: Mon, 18 Nov 2013 19:40:54 +0000
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