Yellen to keep the curve steep

Yahoo: NEW YORK, Feb 11 (Reuters) - U.S. stocks rose on Tuesday after new Federal Reserve Chair Janet Yellen reinforced the central bank's plan to trim its market-friendly stimulus, while also noting labor market conditions needed to improve.

In her first public comments as Fed chief, Yellen emphasized continuity in the Fed's policy strategy, saying she strongly supports the approach of her predecessor, Ben Bernanke.

"They are apparently loving what Janet Yellen has to say which is really, 'hold the course steady, here is what I am.' She is not any different than what they expected her to be," said Ken Polcari, Director of the NYSE floor division at O'Neil Securities in New York.

Stocks are now needed for short term liquidity and more stocks moved to short term reserves from longer term reserves. More deflation and more deficit reduction on the way. Lets budget the finite accuracy in this case. The government channel has a natural inaccuracy greater than the private sector. Because the government channel owns the fiat banker, the inaccuracy of government increases a bit. Yellen by being inaccurate is doing her job, exposing the slight additional inaccuracy of the hegemon fiat banker.