Bonds, Stocks, & Bullion Battered As Powell Shrugs Off Liquidity Crisis

Update (1450ET): Fed Chair Powell was very clear in shrugging off and downplaying the biggest liquidity crisis in over a decade when asked numerous times:

“They have no implications for the economy or the stance of monetary policy.”

This triggered another down leg in bonds, stocks and gold...

Powell did offer some hope for more QE:

“It is certainly possible that we’ll need to resume the organic growth of the balance sheet sooner than we thought.”

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US equity markets are not happy that The Fed failed to dover on its dovish cut hopes and utterly ignored the ongoing liquidity crisis in short-term money markets.

The dollar is spiking...

Source: Bloomberg

And stocks dropping...

Nasdaq is the biggest underperformer...

30Y Treasury yields are holding at the lows of the day but not extending

Source: Bloomberg

But 2Y yields are spiking on the apparent hawkishness...

Source: Bloomberg

Dramatically flattening the yield curve...

Source: Bloomberg

As the market begins to shift to pricing in less than one more rate-cut by year-end...

Source: Bloomberg

Can Jay talk his way out of this? Or make it worse?