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Market Unhappy After Bullard Suggests Possible Octaper

Tyler Durden's picture





 

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 added:

  • *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:

 

 


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