Yellen’s Shocking Announcement: The $USD is TOAST

 

Fed Chair Janet Yellen just announced that the Fed will be kicking the $USD off a cliff.

She didn’t use those words, but the words she did use weren’t all that different.

But first a little context…

Enter Yellen’s testimony to Congress today.

Going into this meeting, the Yellen Fed was talking about aggressive tightening with multiple more rate hikes AND the Fed draining liquidity from the system via a shrinking of its balance sheet.

In this context, Yellen just made a complete 180 degree turn in front of Congress a few minutes ago.

She was dovish.

And not just a little… I mean DOVISH.

A few of her key comments:

  • The Fed doesn’t need to raise rates that much further to be at a neutral level.
  • Inflation is running below the Fed’s goal.
  • The Fed won’t use the shrinking of its balance sheet as a “monetary tool” (meaning it won’t be about draining liquidity from the system).

Put simply, the Yellen Fed is in fact just about done with tightening.

And the $USD is toast.

It’s time to get moving into inflation plays.

Full article: Yellen’s Shocking Announcement: The $USD is TOAST (ZeroHedge)

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