Hi Rusty.

Janet Yellen has been talking dovish as of late, no doubt due to the terrible economic data starting to come through. Yesterday she said inflation is not as bad as they thought, no more than two percent, indicating that no rate rises are needed to control it. Last FOMC she said that they wouldn't need to raise interest rates much more to normalise. I get the impression they are slowly drip feeding the idea that the interest rate hikes are not going to materialise and that possibly QE4 is inbound. I believe this is why the dollar is tanking and also the stock market is still going up. The free monetary lunch is to continue indefinitely. The oddity is that the precious metals are going up as well. In fact they were ridiculously robust going into yesterdays FOMC meeting when they normally sell off heavily. I can only guess that the Feds dovish talk is tipping some people off to the fact that the Fed is trapped and that a crash is coming.

Cheers,

Paul.