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The Tell: Yellen may have offered the clearest explanation for the stock market’s record run

Janet Yellen knows why the stock market is on a record tear. The chairwoman of the Federal Reserve on Wednesday offered up a pretty clear explanation for investors’ recent elation over equities in her testimony in front of the House Financial Services Committee.

Read: MarketWatch’s snapshot of the market

“I think market participants likely are anticipating shifts in fiscal policy that will stimulate growth and perhaps raise earnings,” Yellen said, responding to a question about what is behind the markets’ meltup.

That description is what most on Wall Street refer to as the Trump rally. That is a revival of so-called animal spirits inspired by expectations that President Donald Trump will unfurl a host of pro-business policies, including a loosening of bank regulations, increasing fiscal spending, and cutting individual and corporate taxes.

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