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Wall Street is Celebrating Easy Money Under Yellen

Summary:
Easy Money If you have access, Bloomberg's video interview of Jim Bianco is worth a play: Wall Street Sees 'Easy Money' With Yellen at TreasuryPartial Transcript"Risk markets are celebrating Yellen as Treasury Secretary in a way that suggests she is heading both the Fed and Treasury. They are celebrating 'easy money' Treasury Secretary but technically the Treasury Secretary doers not set monetary policy and is not supposed to influence it.""Her skill set is well qualified for Federal Reserve Chair. As a diplomat, as a chief negotiator , if that's what the Biden Administration wants, her skillset is not Christine Lagarde's skill set when it comes to negotiating things like budgets or sanctions or tariffs. She may grow into the job but it is a big unknown right now.""I think all Wall Street

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Easy Money 

If you have access, Bloomberg's video interview of Jim Bianco is worth a play: Wall Street Sees 'Easy Money' With Yellen at Treasury

Partial Transcript

"Risk markets are celebrating Yellen as Treasury Secretary in a way that suggests she is heading both the Fed and Treasury. They are celebrating 'easy money' Treasury Secretary but technically the Treasury Secretary doers not set monetary policy and is not supposed to influence it."

"Her skill set is well qualified for Federal Reserve Chair. As a diplomat, as a chief negotiator , if that's what the Biden Administration wants, her skillset is not Christine Lagarde's skill set when it comes to negotiating things like budgets or sanctions or tariffs. She may grow into the job but it is a big unknown right now."

"I think all Wall Street sees is easy money and they are happy with the idea, but over the long term there are going to be questions where she fits in that spectrum."

Great Inflation Debate: When and How Big?

Also see Great Inflation Debate: When and How Big?

In a guest post, Jim Bianco at Bianco Research shares his views on inflation and when the Fed will hike.

Bianco: We have argued the 0.33% low in 10-year yields on March 9 marked the end of the 39-year bull market. Rates should be moving higher, but they are being suppressed via massive QE. At some point we expect the “horse” to tear the post from the ground and start running with higher yields.

I also have comments from bond bull Lacy Hunt on what might get him to change his mind.

Mish 

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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