Goldman Sees Yellen Call Limiting 2016 U.S. Stock Market Gains
- Central bank strategy seen shifting from Bernanke put
- Dollar to rise as ECB, BOJ ease policy while Fed tightens
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The "Yellen call" may soon replace the Bernanke put as standard operating procedure at the Federal Reserve. And that’s not great news for the U.S. stock market.
So say strategists at Goldman Sachs Group Inc. in reports for clients this week. With the Yellen call, the central bank would be inclined to raise interest rates as the economy and stock market improve, limiting gains in equities. That’s the flip side of the Bernanke put -- the idea that equity investors were protected against big market slumps because the Fed would ease policy to limit the damage.