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Hawk or Dove to replace Janet? Print
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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

Silver follows the rules....

Following the rules.....

We're still here!

WW3 or something equally dreadful didn't happen despite the headlines.

There's an old saying 'you don't hear the bullet that gets you' and the corollary, if the headlines and commentators are convinced of imminent disaster, it won't happen.

The 'bullet' that hit the western world in 2008 came out of the blue for most commentators. They didn't see it coming. And the collapse of the Chinese economy, endlessly touted by financial commentators and bet on by hedge funds over the last decade - it hasn't happened yet.

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