by Mish Shedlock, Mish Talk:
Treasury Secretary Janet Yellen tried to comfort the markets today. Her comments appear to have been counterproductive.
Everything Under Control
The financial system is still orderly according to Treasury Secretary Janet Yellen in prepared remarks before the US Senate Committee on Banking.
TRUTH LIVES on at https://sgtreport.tv/
“The U.S. financial system has continued to function in an orderly manner, though valuations of some assets remain high compared with historical values,” said Yellen
In other remarks, Yellen noted “potential for continued volatility and unevenness of global growth as countries continue to grapple with the pandemic.”
And “Russia’s unprovoked invasion of Ukraine has further increased economic uncertainty.”
Are Yellen’s comments a relief or an official denial that things are becoming unglued?
At a minimum, it appears there is increased uncertainty about things being “under control”.
What likely roiled the markets were her accurate comments “valuations of some assets remain high compared with historical values.”
The Fed and the US Treasury should have been concerned about that at least four years ago, and arguably since its massive QE programs began.
Unevenness of Global Growth
But don’t worry. Despite the “unevenness of global growth”, monitoring is still ongoing. Phew!
Question of the Day: What happens when “unevenness of global growth” morphs into “”unevenness of global recession”?
Perish the thought. Bloomberg reports Yellen Sees Solid Growth, Possible ‘Soft Landing’ for U.S. Economy.
Possibility of Soft Landing
Something does not quite add up.
How is it that we will have “solid growth” but only a “possibility” of a soft landing?
Let’s not worry about my last question either because Fed Chair Jerome Powell confidently predicts a soft landing or at least something “relatively” soft.