Janet Yellen To Speak In Jackson Hole Thursday

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Aug. 16 (Bloomberg) –- Bloomberg’s Joe Brusuelas discusses what investors should watch for next week with Mark Crumpton on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg)

The fed meeting, in jackson.

Ben bernanke will not be speaking, but janet yellen and one of the people named prominently as his successor will be speaking.

How closely are investors going to follow the comments?

This is her audition to make her case.

She is the one to succeed mr.

Bernanke.

In february 2012, she gave a prominent paper called revolution and evolution of central banking communications him and when she laid out her views on how the fed should feel -- how fed should deal with the crisis.

If you take a look at the -- at some of it, it is up above three point 5 trillion now.

This is not only the tool of monetary policy, but the drawdown of the balance sheet.

Whomever takes control, they are going to have to deal with this legacy.

Anytime anybody who is going to run the fed, it is a big deal.

The market will be watching closely.

They will have to manage that wind up.

They'll have to make sure it is not boil the markets.

And turn into a rapid acceleration of credit.

That is going to be no new trick.

If we do not have a 3-5% and 3-5 years, our economy is in trouble.

That is what we fear.

7-15 years down the road , and 10-12% inflation.

You are expecting a modestly slower pace of purchases.

We are starting to see this.

It is clear that the spike in long-term mortgage rates, between mr.

Bernanke statement and the end of july, it was 94 the peak, a caused some investors to take a step back.

We saw a step back in the home builders community in june and july.

It would not be surprising to see it fall through on the part of some investors.

If you take a look at the confidence here of homebuilders, existing family homes, over time those numbers are going to converge.

It is a matter of how and when.

One of the things that is clear, since mr.

Bernanke began to signal that they might think about sharing that asset purchases, we have had a housing market recovery that is somewhat fragile than investors realize.

We're going to get minutes from the fomc meeting.

What points are investors going to look to clarify?

Was the fed surprised at that start -- sharp move in interest rates?

They went from 1.6 and a close up 2.8 today.

That is what hundred 20 basis points.

-- that is 120 basis points.

What they don't want to see is a three percent.

Jobless claims will be released.

Are you expecting a further reduction in the pace of firings?

What's we are fairly stable.

We are going to see jobless claims.

This shows continuing claims.

It you can see that line flat now.

It is because people are leaving the workforce.

What it tells us is that there is enough demand with the economy growing at two percent that firms are not comfortable furloughing workers.

This is one of the best stories out there.

They have bolstered consumers.

That really is keeping things afloat in terms of consumer expectations.

New-home sales, you estimated the rising confidence.

What does that mean for the underlying trend?

The underlying trend is likely to slow somewhat.

Buyers adjust to a higher rate environment.

Some individuals wait to see what the fed does.

What is occurring here is we have so much from the existing home market, it has shifted preferences to new homes.

People who tend to buy new homes are more affluent.

That tells me we might have a positive demand for homes, but expected to pick back up later this year.

Those individual buyers are going to be deterred by the rise.

We found out that the multifamily homes are starting to spike up.

Even though it wasn't good in january, we had a 26% rise in multifamily homes.

That is a good portion of this data.

The look at the week ahead.

Then you.

This text has been automatically generated. It may not be 100% accurate.

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