Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Weekly Comic: Yellen Says Goodbye as Successful Fed Chair Term Comes to An End

Published 01/02/2018, 11:23 pm
Updated 01/02/2018, 11:28 pm

Investing.com - At Fed Chair Janet Yellen's last policy meeting as head of the central bank on Wednesday, the Fed announced it was holding rates steady, a move that was widely expected, but said inflation is likely to rise this year.

Those comments signaled that borrowing costs will continue to climb under incoming central bank chief Jerome Powell.

The majority of economists believe that the Fed will hike rates in March, followed by another hike in June, with a third move higher arriving in December.

Yellen ended a four-year term as head of the U.S. central bank, that many analysts described as a remarkable success.

She gets credit for managing the Fed’s transition from an ultra-easy monetary policy put in place by her predecessor Ben Bernanke during the Great Recession.

After holding rates at zero for almost the first three years of her tenure, Yellen has engineered four rate hikes since December 2016 in an attempt to normalize monetary policy.

In addition, last September, she launched a plan to taper the Fed’s massive $4.5 trillion holdings of Treasurys and mortgage backed securities.

On the economy front, Yellen is given credit for lowering the unemployment rate from 6.7% when she entered office in February 2014 to 4.1% last month, the lowest level since 2000.

Inflation has also picked up during her tenure, but it remains stubbornly below the Fed’s 2%-target.

In the market, stocks have roared ahead under Yellen, with the Dow (DJIA) up by more than 70% during her four years in charge.

Given all these successes, Jay Powell has been set a very tough bar to match as the next Fed boss.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.