Rebel Yell: The Big Lie In Today's Speech Was Left Unchallenged
Today Federal Reserve Chairman Janet Yellen gave a speech in Philadelphia that stopped trading on Wall Street as traders were glued to either CNBC or Bloomberg.
For me, there was one line that was an absolute lie. It caused be to say enough and turn off the speech. The Chairman stated that ,"And, since the beginning of the year, the dollar has been roughly unchanged against a broad basket of currencies". Sorry but this was a flat out lie.
Since the end of 2015, the U.S. Dollar via UUP is down 5.20%.. UUP is designed to replicate the performance of being long the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc. That my friends is a broad basket of currencies.
The fact is UUP has fallen -5.11% since December 31st. In currencies, that is a decent move to the downside. To say it is flat, well that is just a fabrication of the truth.
The Federal Reserve wants and needs the U.S. Dollar to continue to fall so that commodities can rise and inflation gets back above 2.0%. By the way, this is good for stocks as a weak dollar will help earnings.
What I am upset with is the inability of the media to challenge the Chairman's comment that there has been no change to the Dollar.
Read more at https://www.federalreserve.gov