We have had "bad cop" Dudley and so now "good cop" Evans unleashes more uncertainty, confusion, and farce:
- *EVANS: BEST APPROACH IS FOR LATER LIFTOFF, GRADUAL TIGHTENING
- *EVANS SAYS `EXTRA-PATIENT APPROACH' TO TIGHTENING IS WARRANTED
The reaction was very clear, Fed Funds Futures dipped to record lows for October (16%) and December (41%). And worse still, "dovishness" did nothing for stocks at all...
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Evans added:
- *EVANS SAYS `THERE IS NO PROBLEM IN MODERATELY OVERSHOOTING 2%'
- *EVANS: APPROPRIATE TO RAISE RATES VERY GRADUALLY AFTER LIFTOFF
- *EVANS SAYS HE SEES SUBSTANTIAL COSTS TO PREMATURE RATE LIFTOFF
Charts: bloomberg
