Fra Zerohedge:
Update: Stocks and Bonds tumbled after fed Chair Powell confirmed that The Fed “doesn’t see a strong case for a rate move in either direction” spoiling the dovish narrative priced into markets…
Additionally, Powell comments that “some asset prices are elevated but not extremely so.”
Powell claims that the IOER cut doesn’t signal a shift in monetary policy… no, just that The Fed has lost control of interest rates!
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As we detailed earlier, the market has instantly priced in an even more dovish Fed (now expecting 37bps of rate cuts to the end of 2019) as the IOER cut has dragged down bank stocks and bond yields broadly…
