By Scott Carmack : Janet Yellen, in a speech on Friday mentioned that the Fed could choose to allow the U.S. economy to "run hot" to allow for an increase in the labor participation rate. In Holbrook's Q2 newsletter, " Brexit is not the Problem, Central Bank Policy is ," we wrote: Janet Yellen's comments on Friday indicate that this scenario is increasingly likely. Bearish sentiment is still pervasive, and Fed inaction in the face of higher inflation should be welcomed by equity investors, at least in the short run.