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

Tyler Durden's picture

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...

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knukles's picture

"more upside possibility in uncertainty"  Oh fuck me, no shit Sherloick on a Pogo Stick.
These people don't know what they're doing.

Honest to God; they said it; "more upside possibility in uncertainty"
Please deliver us from Evil

GUS100CORRINA's picture

FED must be reading another news source like 'shadowstats'.

Just look around at the 'real' economic data like that data supplied by www.shadowstats.com or other reliable sources.

I know what the CBs and politicians want, but what is the real TRUTH?

By the way, the comment “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" is complete and utter BS!!!

INQUIRING MINDS WANT TO KNOW!

=== Shadowstats Latest News ===

Posted March 18th, 2017 at 2:42 PM (CST)

The latest from John Williams’ www.shadowstats.com

- Industrial Production May Be Bottoming, Yet, There Are New Signals of Intensifying Economic Risk

- Production Was Flat in February, Minimally Positive Year-to-Year, with Gains in Manufacturing and Mining Offset by Weather-Distorted Utilities

- No Economic Expansion: Activity Held Below Pre-2007 Recession Peaks, with Production Down by 0.94% (-0.94%), Manufacturing Down by 4.97% (-4.97%)

- Major Downside Revisions to Production Activity of Recent Years Likely Loom with the March 31st Annual Benchmarking Going Back to 1972

- General Outlook Remains in Place for Continuing Near-Term Economic Stagnation and Renewed Downturn

“No. 874: February Industrial Production, Updated Economic Review”

www.shadowstats.com

====

Posted March 15th, 2017 at 2:42 PM (CST)

The latest from John Williams’ www.shadowstats.com

– FOMC Fiddles with Boosting Interest Rates, While Annual Real M3 Growth Just Plunged to a New Signal for a Major Economic Downturn

- Annual Contraction in First-Quarter Real Earnings Is a Virtual Certainty; Back-to-Back Quarterly Contractions Also Are in Play; Circumstances Not Seen Since the Stalled GDP of Second-Half 2012

- February Nominal Retail Sales Gain of 0.08% Was Less than Inflation; 

Inflation-Adjusted Real Sales Declined by 0.04% (-0.04%) for the Month

- Headline Annual Inflation Surge Has Been Due to Energy-Price Distortions, Not to an Overheating Economy

- February 2017 Monthly CPI Inflation Rose by 0.12%, Pushing Annual CPI-U Inflation to a 60-Month High of 2.74%, with CPI-W at 2.82% and ShadowStats at 10.5%

- February Final-Demand PPI Annual Inflation Hit a 59-Month High of 2.19%

“No. 872: February PPI, CPI, Retail Sales and Earnings and the FOMC”

www.shadowstats.com

gatorengineer's picture

What language is that even supposed to be in Yiddish, Ebonics or what?  I think it says, there's a risk that the possibility of increased uncertainty will increase?

Nobody For President's picture

Damnit! You guys are making my head hurt!

MFL5591's picture

Insanity!  No growth and possibly more rate hikes?  This is a clown show!

mily's picture

loan issuance y/y vs. fed funds rate shows how far behind the curve fed really is and also how ridiculous last week's rate hike was, unless they wanna sink this POS market and dump it on donald's shoulders on purpose

gatorengineer's picture

Weiner^^^  This can be the only thing that they want.  Housing already has had a double tap to the head, but hasnt fallen over yet.

MFL5591's picture

The Comey show is detroying this country along with the other half of the deep state the Fed

cowdiddly's picture

If it is rate hikes and increasing uncertainty then quit sitting on the gold price you micromanaging corrupt fuck. Until then nobody believes you, whatever it is you tried to say with that gibberish.

cowdiddly's picture

14 crappie to 2.5pds & 2 Kentucky bass.. black and white feather jigs in 2.5-4 ft water and they are just getting started. That's the fishing report for premo eating. :7)

Sky flyer's picture

Bass fishing is slow at Barren. Hybrids starting to bite.

BingoBoggins's picture

warm, shallow water ... closing my eyes the better to relish it. Crappies, hungy schools congregating beneath the bridge ... mid April

 

(blinks) 2.5 pounds!!!???

cowdiddly's picture

OT: I did not weigh them, just shucked them but at the tail as wide as your wrist. might be pushing 3. We call those "Barn Doors" here.

I'm lucky our local lake has had the state record not once but twice. 4 pd 13oz is the last lake record caught last summer. It still holds the state record  flatheat catfish @ 106 pd for years.

Caught two of those, a black one and a white one in the same beaver lodge. That spot is always good for a couple of nice ones but its a pain in the ASS to get to, probably why they are always there.

MFL5591's picture

The deep state will not stop till they have destroyed Trump

shizzledizzle's picture

Unwind their balance sheet... Comical. 

Rellorellin's picture

Just a few years ago, just a slight "hint" of a rate hike cause bond yields to spike. All of the sudden, rate hikes cause bond yields to fall. We are truly in a bizarro world!

small axe's picture

Evans is just showing that the Fed takes seriously its twin mandates

(Mandate No. 1: Increase bank profits by any means possible; Mandate No. 2: Eventually own everything by fulfilling Mandate No. 1)

BingoBoggins's picture

I wondered what happened. Euro down correspondingly after a ten minute lag, now starting to climb. 

"What really spooked the horses? ... Damn. Outta powder ..."

moneybots's picture

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

 

Wasn't the FED complaining that the fiscal side needed to do more?

moneybots's picture

"FED'S HARKER: CAN'T RULE OUT MORE THAN THREE HIKES THIS YEAR"

 

Every meeting last year was "live".  Yet no rate hike for 11 months.

Snaffew's picture

stocks what?  BTFD rules the day, month, year and decade.  BTFD doesn't fail.

BSHJ's picture

O M G !   The SnP is DOWN over 2 points !!  What a horrid start to a new week!