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?