Send in the Clowns

Last week the Fed treated us to a whipsaw as market perceptions apparently were not in line with the FOMC policy statement, which was basically a punt.  Then the very next day the Fed’s James Bullard  jawboned the media about a possible October Federal Reserve tapering.  Hence, a letter writer was left with images of a 3 ring circus heading into the weekend.  From the opening segment of the September 22 edition of Notes From the Rabbit Hole:

Last week’s opening title was ‘Get Ready for a Climax to the ‘Taper’ Hype’ and boy did it ever climax.  The FOMC rolled over and the market over reacted.  Everybody it seems (bears, bulls, inflationists, deflationists, gold bugs; everybody) was punished at one point or another.  James Bullard even had the nerve to get in front of a microphone and exercise his jawbone about a possible October ‘taper’ and the anti-climax was on.

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