Stocks & Bonds Sink As Bullard, Powell Crash Odds Of A 50bps-Rate-Cut In July

Update: Fed Chair Powell is speaking now and is less than his recently dovish self. Signaling that they will "monitor," Powell added that "damage arises when policy bends to political interests" seemingly signaling a more hawkish bias than the market's greed requires...

Between Bullard and Powell's apparent walk-back of uber-dovishness, the odds of a 50bps cut in July have collapsed from 40% to 16%...

*  *  *

St.Louis Fed President Jim Bullard - and uber-dove - has apparently decide to distance himself from going 'full-Kashkari' by noting while "it seems like a good time for an insurance rate-cut," the situation "doesn't call for 50bps."

Unfortunately the market needs moar (40% odds priced in of a 50bps cut)...

And so stocks tumbled to show their disapproval

Don't worry though, Bullard assures the American public that "he has no immediate concerns about asset bubbles" unlike Kaplan.

Treasury yields spiked...

As did the dollar...

And the dollar's gain was gold's loss...

Will The Fed fold even more?