Dollar Jumps As Kashkari Comments Trigger Bond, Stock, & Bullion Selling

Dollar Jumps As Kashkari Comments Trigger Bond, Stock, & Bullion Selling

Minneapolis Fed President Neel Kashkari appears to have triggered some more turmoil this morning with his two-faced non-committal comments:

“While I supported increasing the federal funds rate by 75 basis points at this week’s meeting, and could support another such move in July, this uncertainty about how much tightening will be needed leads me to be cautious about too much more front-loading,”

Kashkari continued to explain, in an essay posted on the bank’s website:

“A prudent strategy might be, after the July meeting, to simply continue with 50-basis-point hikes until inflation is well on its way down to 2%,”

Kashklari’s comments came shortly after Esther George explained her dissent – preferring 50bps to the 75bps hike dcue to fear of creating more uncertainty.

While Kashkari basically said nothing, markets remain hyper-sensitized to headlines (thanks in part to today’s huge OpEx) and stocks tanked…

Bonds also puked…

The dollar spiked…

Which means gold was sold…

Of course, all of this will be ready to flip the other way on the next comments from a Fed speaker.

Tyler Durden
Fri, 06/17/2022 – 10:34


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