It seems just as a plethora of Fed heads had to walk back Bernanke's last press conference hawkishness, that the uber-dovishness interpreted by the market from Wednesday's FOMC is now being tapered back. Speaking on Bloomberg TV, Fed's Bullard warns an October Taper is on the cards:
- *BULLARD SAYS ECONOMY ISN'T THAT FRAGILE
- *BULLARD SAYS $10 BILLION TAPER VERSUS NO TAPER NOT `BIG THING'
- *BULLARD SAYS NO TAPER, SMALL TAPER WAS A `BORDERLINE' CALL
- *BULLARD SAYS `SMALL TAPER' POSSIBLE BY FOMC IN OCTOBER
The market (bonds, stocks, and gold) reacted accordingly and is unwinding the exuberance in a hurry. The question now, of course, is what key data is due out that will shift them off the fence. For traders, clearly good news is now very bad news - especially over the next month.
- *BULLARD: PRESS CONFERENCE MAY BE POSSIBLE AFTER OCTOBER MEETING
- *BULLARD SAYS OCTOBER IS A `LIVE' MEETING
- *BULLARD SAYS FALLING PARTICIPATION RATE IS MOSTLY `STRUCTURAL' (told ya so dance?)
- *BULLARD SAYS `FLOW RATE OF QE REALLY DOES MATTER A LOT' (wow, where have we heard that before?)
The Market's Reaction: