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Yellen’s Shocking Announcement:The $USD is TOAST

Currencies / US Dollar Jul 14, 2017 - 05:15 PM GMT

By: Graham_Summers

Currencies

Fed Chair Janet Yellen just announced that the Fed will be kicking the $USD off a cliff.

She didn’t use those words, but the words she did use weren’t all that different.

But first a little context…


The fact is that the $USD has been falling steadily throughout 2017. At this time of this writing, it was down nearly 7% year to date.

And this was during a period in which the Fed was RAISING interest rates multiple times!

Enter Yellen’s testimony to Congress today.

Going into this meeting, the Yellen Fed was talking about aggressive tightening with multiple more rate hikes AND the Fed draining liquidity from the system via a shrinking of its balance sheet.

In this context, Yellen just made a complete 180 degree turn in front of Congress a few minutes ago.

She was dovish.

And not just a little… I mean DOVISH.

A few of her key comments:

  • The Fed doesn’t need to raise rates that much further to be at a neutral level.
  • Inflation is running below the Fed’s goal.
  • The Fed won’t use the shrinking of its balance sheet as a “monetary tool” (meaning it won’t be about draining liquidity from the system).

Put simply, the Yellen Fed is in fact just about done with tightening.

And the $USD is toast.

It’s time to get moving into inflation plays.

On that note, I recently told subscribers of our weekly Private Wealth Advisory newsletter about EIGHT inflation trades that could produce truly MASSIVE returns as the $USD collapses.

CLICK HERE!

Graham Summers

Phoenix Capital Research

http://www.phoenixcapitalmarketing.com

Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and undervalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.

Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.

© 2017 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Graham Summers Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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