I was a bit surprised by the rally in the US markets following ‘dovish comments” from in-coming Fed Chairman Janet Yellen at her Fed Chairman confirmation hearing on 14 November 2013.  During that hearing Janet made a number of key comments which apparently confused the market:

a) benefits of QE3 program outweigh the costs – this gave the impression that there would be no tapering yet

b) she saw meaningful progress in the labour market but wanted to see more signs that the progress could be sustained

c) Fed has no set time to remove QE3

d) QE3 cant go on forever

The key dates to me ate 16 September 2013 when “Hawk” Lawrence ...