The Presidential Daily Brief

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  1. Janet Yellen Warns Against Overconfidence

    She’s less than exuberant. The Fed chair cautioned investors against high-risk behavior, such as putting faith in the rallying market while ignoring the possibility of an upward jerk in bond yields. Yellen’s prophecies can be self-fulfilling: Anything she says can move markets, and her comments likely played a role in the Dow’s 1.1 percent drop Wednesday (it recovered, closing down 0.5 percent). But there’s a lingering sense that the market has gained too much too soon, and investors are likely to proceed with caution.

    FT (sub), WSJ (sub)

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