Nov 14 (Reuters) – On the standards by which these things
are judged, Janet Yellen’s confirmation hearings went well,
meaning markets rallied with little volatility.
Speaking before the U.S. Senate Banking Committee, the
Federal Reserve Chair nominee was dovish, but not so much as to
scare the horses.
“I consider it imperative that we do what we can to promote
a very strong recovery,” Yellen, currently the Fed’s vice chair,
told the panel.
Considering that the current recovery, though long in the
tooth, has only produced tepid jobs growth and below-target
inflation, a “very strong” recovery is going to require the
continued administration of stimulants.
For risk assets that was good but not unexpected news.
The S&P 500 rose a half a percent, 10-year U.S.
government bond yields fell by a couple of basis
points, or about 1 percent. All in all a creditable performance
in markets, especially considering Yellen has good reason to not
appear too dovish ahead of her confirmation votes.