Stocks Plunge, VIX Spikes After "Hawk Cop" Fischer Spoils "Dove Cop" Yellen's Party

Despite Yellen's hawkish tone, market participants clung to dovish hopes in her words... but Stan Fischer just clarified "Yellen's comments are consistent with a possible September hike" and that has spoiled th eparty in stocks, bonds, gold, and the dollar...

Fischer explains...

  • *FISCHER: I DON'T THINK FED IS BEHIND THE CURVE
  • *FISCHER: ECONOMIC PICTURE IS VERY COMPLEX
  • *FISCHER: YELLEN'S COMMENTS CONSISTENT WITH POSSIBLE SEPT. HIKE
  • *FISCHER: BIG ISSUES IN GROWTH ARE INVESTMENT, PRODUCTIVITY
  • *FISCHER: ON EMPLOYMENT, WE'RE DOING WELL
  • *FISCHER: FED IS RESOLUTELY NOT A POLITICAL BODY
  • *FISCHER: WE AREN'T ELECTION FORECASTERS; LOOK AT ECO. SIGNALS
  • *FISCHER: IN FOMC MEETINGS WE DO DISCUSS SUBGROUPS OF EMPLOYMENT
  • *FISCHER: NOT TOO CONCERNED ABOUT ASSET BUBBLES NOW

So to summarize:

Yellen: Hawkish titled speech but offered this dovish bone: "future policymakers may wish to explore the possibility of purchasing a broader range of assets."

 

Fischer: Hawkish tone confirmation "Yellen's comments are consistent with a possible September hike"

Which broke the tie for the algos... and the market reacts...

 

VIX is soaring...

 

And The USD is surging...

 

Stocks have slumped to 3-week lows...