Overnight weakness from China's 'taper talk' has been exaggerated this morning as Fed's Rosengren, speaking on CNBC, warned that while inflation was not a problem, the costs of QE were a potential problem and risk to financial stability.
- *ROSENGREN SAYS FED MUST BE ATTENTIVE TO POSSIBLE QE COSTS
- *ROSENGREN SAYS `WE'RE IN UNUSUAL TIMES' WITH FED POLICY
This somewhat hawkish tone sent the USD higher in a hurry, Treasury yields higher and US equities lower as the 'market' reacts to every headline once again.
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Charts: Bloomberg