Market Verdict on Yellen Shows Fed Transparency Comes With Costs
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Janet Yellen’s greeting in financial markets during her first press conference as Federal Reserve chair highlights the hazards of too much communication, investors said.
Selling accelerated in equities and bond yields jumped just after 3 p.m. New York time yesterday as Yellen told reporters that the interval between the end of quantitative easing and the first increase in the fed funds rate might be “around six months.” It was more than she needed to say, according to Donald Selkin of National Securities Corp. and Philip Orlando of Federated Investors Inc.