Gold Spikes After Fed's Kaplan Says "Market Correction Could Be Healthy"

Gold is spiking, USDJPY dropping, and stocks leaking lower after Dallas Fed's Kaplan dropped some serious tapebombs ahead of Yellen's speech...

Speakingon Bloomberg TV, Kaplan headlines wwre as follows...

  • FED'S KAPLAN: WE CLEARLY ARE ACCOMMODATIVE RIGHT NOW
  • KAPLAN: INVESTORS USED TO IDEA RATES WILL BE LOWER FOR LONGER
  • FED'S KAPLAN: MARKET OR REAL-ESTATE CORRECTION COULD BE HEALTHY
  • KAPLAN SAYS MARKET CORRECTION WOULDN'T NECESSARILY HURT THE ECONOMY, AND MAY HELP IT
  • KAPLAN: WE SHOULD BE MOVING ON B/SHEET AS SOON AS POSSIBLE
  • KAPLAN: FED CAN SHRINK B/SHEET WITH MINIMAL IMPACT ON MARKETS

And the reaction was swift...

Gold spiked and USDJPY tumbled...

 

Bonds were also bid... but stocks barely budged?