Bonds & Bullion Bid As Stocks, Dollar Drop On Fed Warning

March rate hike odds dropped very marginally from before The Fed minutes (from 38% to 34%)...

 

But there is a great reaction in capital markets with stocks disappointed by The Fed's warnings and bonds and bullion bid...

 

Fed fears of dollar strength knocked the USD index lower... (despite a more hawkish tone)

 

And the yield curve flattened...

 

As it seems the market is not buying what The Fed is selling - except perhaps a loss of faith is fiscal policy.