“The Fed, whether run by Ben Bernanke or Janet Yellen, is in no rush, after so many head fakes over the last four years, to jeopardize the recovery by tightening too soon or reducing accommodation too quickly. That’s it. Full stop.”
That’s from Dan Greenhaus at BTIG (@danBTIG) and we think it’s the most succinct characterization of what’s happening with the Fed and the economy.
Basically, there’s evidence that the economy is picking up, but as we said yesterday, Yellen is a dove and will not risk a premature tightening. That’s it.