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Confusion-nado - 2015 Rate-Hike Odds Plunge To Record Lows After Fed's Evans Dovish Comments

We have had "bad cop" Dudley and so now "good cop" Evans unleashes more uncertainty, confusion, and farce:

  • *EVANS: BEST APPROACH IS FOR LATER LIFTOFF, GRADUAL TIGHTENING
  • *EVANS SAYS `EXTRA-PATIENT APPROACH' TO TIGHTENING IS WARRANTED

The reaction was very clear, Fed Funds Futures dipped to record lows for October (16%) and December (41%). And worse still, "dovishness" did nothing for stocks at all...

 

 

Evans added:

  • *EVANS SAYS `THERE IS NO PROBLEM IN MODERATELY OVERSHOOTING 2%'
  • *EVANS: APPROPRIATE TO RAISE RATES VERY GRADUALLY AFTER LIFTOFF
  • *EVANS SAYS HE SEES SUBSTANTIAL COSTS TO PREMATURE RATE LIFTOFF

 

 

Charts: bloomberg