Fed Tells E-Trade Baby What To Do, Jeffrey Lacker Edition

Tyler Durden's picture

Another faux-hawk takes the dovish tone and walks back the new normal 'template-less' Taper tantrum that Bernanke created...

  • LACKER SAYS FED NOT 'ANYWHERE NEAR' CUTTING BALANCE SHEET SIZE
  • LACKER SAYS 'MAYBE MARKETS GOT A LITTLE BIT AHEAD OF US' ON QE

So no tightening (duh). But Lacker, once upon a time a hawk too, just like Plosser and Kosher-Lakota (sic), tries to regain some credibility as follows:

  • LACKER SAYS HE WOULD BE `FINE' WITH FOMC TAPERING QE NOW
  • LACKER SAYS HE WOULD LIKE TO SEE FED BALANCE SHEET DECREASE

Equities jerked higher by 3-4 S&P points (bonds didn't) - so it looks like the impact of the jawboning is fading.