by Martin Armstrong
Janet Yellen’s remarks today confused the people who think the world turns on the Jobs numbers since they remain clueless with respect to the changing trend in employment. They do not take into consideration the technology shift, so they are still trying to trade from 20th-century concepts. Yellen gave an outlook of the U.S. economy and said that interest rate hikes are coming. Higher rates are needed for pension funds, and the decision will cause the stock market to take off which will appear like asset inflation.
“I see good reasons to expect that the positive forces supporting employment growth and higher inflation will continue to outweigh the negative ones,” Yellen said. She expressly stated with regard to the Jobs Report data that the Fed will respond “only to the extent that we determine or come to the view that the data is meaningful in terms of changing our view of the medium- and longer-term economic outlook.”