Reaction to Fed Chair Yellen’s semi-annual Testimony before the Senate triggered a sell-off in US Treasury yields and a broad US Dollar rally as she left the door open for a rate hike as soon as the next FOMC meeting in March. US equities initially wobbled, dragged lower by the rate sensitive utility sector, but they soon rallied as both the Dow and S&P closed again at new all-time highs with a gain of 0.40% and 0.32% respectively. In line with previous comments, Dr Yellen noted “waiting too long to remove accommodation would be unwise, potentially requiring the FOMC to eventually raise rates rapidly, which could risk disrupting financial markets and pushing the economy into recession”. She also noted that if job gains and rising inflation continue as the Fed expects, an increase in the benchmark Federal Funds rate likely would be appropriate “at our upcoming meetings,”. In regards to potential changes to fiscal policy, the Fed Chair reiterated her view that it is too early to know, noting that most Fed officials “have taken the view that they want greater clarity about the size, timing, and composition” of fiscal policy before factoring its impact in their forecast.

To mark my 1275th issue of Tradernoble Daily Commentary I am offering a special 2 year rate of Euro 2750 for my Platinum Service which includes 1/4 updated emails throughout the trading day. This offer is open to both new and existing members and if anyone is interested can you please contact me on bryan@tradernoble.com for details.

For anyone following my Platinum Service it made 88 points yesterday and is now ahead by 825 points for February having made 1734 points in January, 1351 in December, 1971 in November and 1582 in October. The previous four months saw gains of 1142, 1782, 1682 and 2550 points respectively. Since I started this Platinum Service in June 2015 it has averaged a monthly gain of over 1800 points.

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