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Hawk or Dove to replace Janet? Print
Written by Site admin   

Is Janet Yellen a Hawk or a Dove?

We never really found out what she truly belived. She was both at times and while she was a Hawk telling us she was "minded to tighten rates", Donald Trump was a Dove, saying he wanted a weak dollar so interest rates would have to remain low.

 

Three days ago it was said that Trump favoured John Taylor for the new Fed chair. Another accademic of course, a theory man. Taylor is een as a Hawk, stronger dollar. He would likely hit the interest rate button as inflation ticks up.

His claim to fame is the Taylor Rule. All academics need a widely talked abot theory to impress other academics, and their students of coure.

The rule states that for evry 1% increase in inflation, the nominal (fed funds) interest rate must also rise by 1%.

And how did the $DXY react to the news, suprise suprise, it ticked up for a few hours helping it's uptrend along!

 

From the blog

Bitcoin crushes Gold...

Bitcoin Crushes Gold - early Dec, 2017

Which one to trade, or has the world really turned upside down and Bitcoin has finally taken over from Gold?

Yeah, right.....

Trade both - this could become a fantastic Arb play

Buy Gold - Sell BTC

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