Slow Train Comin’

Federal Reserve Chair Janet Yellen is testifying before congress today. Her remarks were put out ahead of time and are now being parsed around the world.

Peter Boockvar of the Lindsey Group sums it up below:

After speaking last Friday, Yellen’s comments today were not anything new and she repeated that a “rate rise at some point this year is likely appropriate.” She sounded optimistic that “growth will strengthen over the rest of 2015.” Yellen also is telling markets again that they should not focus on when they will first raise rates but to instead focus on the pace of increases. If there is anything that is certain, the market knows how slow the Fed will be in raising rates, after all, it’s been 9 years since they last hiked rates. She mentioned that US consumer spending has picked up but I guess she didn’t change her speech after yesterday’s retail sales number. International developments were discussed, particularly with Greece and China. On wage growth, she sees “tentative signs of a pickup but growth remains relatively subdued.” Yellen also said slack in the labor market remains which with 93mm people not working, the slack is there but that doesn’t mean they are coming back into the labor market anytime soon at current wage rates. On getting to their 2% inflation target, she still expects it as “transitory factors dissipate.” Hopefully the Q&A will provide some new insights into her thoughts.

I agree with Peter (and Janet) that its the pace that will be more important than the timing of the first one. The good news is, there’s literally nothing in the data that would force a quickening pace, where we stand today.

Attitudes are slowly changing about certain asset classes – have a look at the poor performance in long bonds and REITs this year – and the market mindset will continue to undergo a shift. This is what is supposed to happen.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. tangerine bank canada login commented on Nov 24

    … [Trackback]

    […] Information on that Topic: […]

  2. 메이저놀이터 commented on Dec 25

    … [Trackback]

    […] Here you will find 56439 more Information to that Topic: […]

  3. click site commented on Jan 05

    … [Trackback]

    […] Read More Information here to that Topic: […]

  4. DevOps consulting company commented on Feb 05

    … [Trackback]

    […] There you will find 5043 more Information on that Topic: […]