All of Wall Street will be watching new Federal Reserve Chair Janet Yellen when she delivers her first testimony as Fed chair before Congress this week. Cumberland Advisors Chairman and Chief Investment Officer, David Kotok, told Breakout there was nothing in the latest employment report to derail Federal Reserve policy.
“The employment report was right in the middle. You don’t panic over it. You don’t get excited about it.” Kotok said he expects Yellen will emphasize that the Federal Reserve will not come off low interest rates.
“This Fed is not about to take a fragile economic recovery and toss it over the cliff,” said Kotok. “They won’t do it. Yellen won’t do it. The majority of the FOMC won’t do it.”
Yellen will begin with the House Financial Services Committee Tuesday morning, where she likely will face tougher questioning than Thursday’s testimony before the Senate Banking Committee. Kotok said she will have adversaries in the House, but that any antagonism will be polite.
“The Fed policy path is set,” said Kotok. “There are other issues which are much more monumental and the Fed is not one of them. For the first time in 2014 we can take the Fed off the table as the big uncertainty.”
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