Stocks Slump Into Red After Fed’s Evans Warns Of Rising Uncertainty

We expected a hawkish tilt to the Fed’s speakers this week – in confusing opposition to Yellen’s dovish commentary – and after Harker’s earlier comments, it appears Fed’s Evans comments that he “sees more upside possibility in uncertainty” facing The Fed, has sparked a wave of selling in stocks…

  • *EVANS SEES MORE UPSIDE POSSIBILITY IN UNCERTAINTY FACING FED
  • *EVANS: LOWER CAPITAL EXPANSION MAY REFLECT LOWER TREND GROWTH

And Evans offered this more hawkish bias too…

“This is a challenging time period to all of a sudden have a big injection of positive fiscal policy expansion because we are pretty close to full employment. We might be at full employment,”

In other words, any Trump success (in a fiscal boost) will be met with more rate hikes.

That’s not what the market wanted to hear…

 

This worried perspective follows Harker’s earlier hawkishness:

  • *FED’S HARKER: CAN’T RULE OUT MORE THAN THREE HIKES THIS YEAR
  • *FED’S HARKER: WE ARE DISCUSSING THE BALANCE SHEET
  • *HARKER: BALANCE SHEET TILT SHOULD BE TO TREASURIES, LESS MBS

Bonds don’t seem to care…


via Read More Here..

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