In yesterday’s comments we asked and answered our own question in regards as to when the Fed would hike rates,” , how long will the Fed sit on the sidelines before they hike rates, it’s going to be sooner than people think?” This morning’s business news has the following,” Treasury Secretary Janet Yellen conceded Tuesday that interest rates may have to rise to keep a lid on the burgeoning growth of the U.S. economy brought on in part by trillions of dollars in government stimulus spending.” So basically, one day after we asked the question, the Fed has answered it. It may have been driven in part by Buffet’s comments on inflation at the Berkshire Hathaway AGM.
U.S. tech stocks are down nearly 2.5%, while others are down 1%.
The Canadian dollar is down slightly to the USD on Yellen’s comments however, commodities are holding in with oil up 1.75%, lumber continues on its tear, up 2.5% this morning to 1,655 USD up 366% year over year. This is keeping the CAD from weakening to the USD, but for how long?