As if there was any doubt that the Federal Reserve is a political beast, Chairwoman Janet Yellen confirmed it with these comments: “Jermaine Brownlee was an apprentice plumber and skilled construction worker when the recession hit, and he saw his wages drop sharply as he scrambled for odd jobs and temporary work. He is doing better now but still working for a lower wage than he earned before the recession.” Well if the Federal Reserve had kept rates at a normalized level through the good and bad times then we wouldn’t have this stop and go economy/real estate market. Someone in Washington has Yellen’s ear about creating more jobs. Instead her focus should simply be on sound money policies. Take a look at this chart. It’s the spread between the 10-year Treasury and the Federal Funds rate. There’s plenty of room for the Fed to tighten and satisfy Yellen’s concern about mortgage rates.
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E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at email@example.com.