Skip to main content

deVere Group CEO: Biden's Pick Of Yellen For Treasury Secretary Could Mean Low-Rates For Years

Navi Persaud
Jan 20, 2021
Photo of Janet Yellen. Credit: @JanetYellen (Twitter)

Commentary from Nigel Green, chief executive officer and founder of deVere Group, one of the world’s largest independent financial advisory organizations, suggests that President Joe Biden's selection of Janet Yellen as U.S. Treasury Secretary could help stock markets reach record highs in 2021 and yield low-interest rates for years.

The prediction was made on the day of Joe Biden’s inauguration as the 46th President of the United States and follows Yellen’s testimony in Congress ahead of her expected appointment.

“Today’s political pageantry in Washington represents the dawning of an era of renewed certainty, stability and the return to established norms, all of which the markets approve," said Green. “However, despite the inauguration pomp and ceremony at the Capitol, investors’ focus is now already on Janet Yellen, who will take over from Steve Mnuchin as U.S. Treasury Secretary.”

“In her testimony in Congress on Tuesday, the former Federal Reserve Chair called on lawmakers to ‘act big’ on coronavirus stimulus especially with interest rates being at historic lows. At the Fed she continually made the case for full employment, meaning we know already, her track record proves that she is prepared to spend. With Yellen in charge and with an economy that needs a shot in the arm, I think we can expect massive spending combined with continued ultra-low interest rates for years. This will act as a catalyst for stock markets.”

According to a press release, following Yellen's testimony in Congress, the U.S. dollar dipped lower as investors moved away from safe-haven assets, such as the U.S. currency, and more towards stocks, indicating more confidence in the markets.

“Investors should ride the Biden bounce in the markets – but do so judiciously,” added Green. “Yellen has indicated that she will do whatever is necessary to get the economy going again. We can expect considerable government spending under the Biden administration and ultra-low interest rates to be maintained by the Fed. There will be peaks and troughs as always, but with these policies and greater stability in the White House, I believe, we could see markets produce even higher highs in 2021 than in 2020.”

Click here to learn more about the deVere Group.

Published
Jan 20, 2021
Rocket Pro Announces Major Initiatives

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021
Zillow Stock Falls After It Halts Buying Houses To Flip

Zillow’s stock fell nearly 10% Monday after the company announced its Zillow Offers division would stop buying homes.

Industry News
Oct 19, 2021
MBA Swears In New Officers For 2021-22

Kristy Fercho, executive vice president and head of home lending at Wells Fargo, is the new chairman.

Industry News
Oct 18, 2021