Yesterday, we pointed out the recent Fed speakers appeared to be playing down this equity market turbulence, crushing the hopes that the "Powell Put" is struck anywhere close to Yellen's.
Today, we get further confirmation.
First of all today we had Philly Fed's Patrick Harker suggesting this volatility (a VIX above 30) makes sense based on yields...
“There are a lot of potential culprits, I would say, of increasing that volatility,” Philadelphia Fed President Patrick Harker says, referring to recent stock market sell-off.
“If you start to believe that the long end of the curve is going to start to go up, it makes sense that equities would have an adjustment,” Harker says while answering questions from reporters after a speech in New York.
Harker says stock market volatility hasn’t changed his economic outlook, doesn’t think it will impact business investment and consumer spending.
And then New York Fed's Bill Dudley ventured on to Bloomberg TV to calm the masses, proclaiming that this drop is "small potatoes" and the decline in equity values (has no economic implications."
Dudley confirmed that "yields moving up are putting pressure on stocks," and reassured that "further gradual rate-hikes will increase economic confidence."
Furthermore, Dudley seems to blame Trump - noting that "a too-strong economy could make The Fed tighten harder."
Good luck with that.