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Dependable Midwestern Financial Advisors

Is Janet Yellen the Most Powerful Person in the World Right Now?

Janet Yellen may not be able to wage military war, but she can move markets, every market.

Following the release of the Federal Reserve’s meeting minutes, the Chair held a Wednesday press conference and surprised investors of all asset classes. Instead of hinting rate increases, Yellen was dovish and said the Fed was cautious because of dollar strength, lower than ideal inflation and a struggling labor market. Afternoon stocks rallied, bonds rallied, gold rallied, but the dollar fell. It was clear a strong dollar was getting in the way of inflation and exports, which worries the Fed as a factor impacting GDP.

The charts below highlight the power of the Federal Reserve. Each showcases the asset reactions after the release of meeting minutes. Each also shows the influence not only of the minutes, but of Yellen’s interpretation as well.

S&P 500

S&P 500

Dow Jones Industrial

Dow Jones Industrial

NASDAQ

NASDAQ

WTI Crude Oil

WTI Crude Oil

Gold

Gold

Dollar

Dollar

10-Year Treasury Bond Yield

10-Year Treasury Bond Yield

And Volatility

And Volatility

Charts courtesy of Yahoo! Finance

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