Earlier today, NY Fed president Bill Dudley sparked a hawkish storm in the markets, when in a bizarre statement he doubled down on the Yellen's "hawkish hike" rhetoric, and made it seem that easing is now perceived by the Fed as a bad thing:
Then moments ago, today's second Fed speaker of the day, Chicago Fed's dovish, FOMC voter Charles Evans delivered a Dr. Jekyll and Mr. Hyde statement, where first, in his prepared remarks and during the subsequent Q&A in New York he sounded rather hawkish, while speaking to reporters after the event he flipped at emerged as his usual old dovish self.
First, here are the highlights from the dovish Evans:
He also said something which really doesn't make any sense, to wit: “I want to assure you that if we know things are going wrong we will act.” The statement is clearly meaningless because on countless occasions the Fed has said it has no way of seeing asset bubbles in advance, and since an asset bubble is the biggest risk facing global markets, one wonders just how the Fed could know that "things are going wrong."
And then as he was leaving, the dovish Evans we all know so well, made a surprise appearance:
His non-committal conclusion was that “we’re at a point where we’d be well- served to meaningfully monitor the data.”
During his speech, the dollar initially strengthened, then weakened, but since the end of his speech it has resumed its autopilot move higher as Dudley's comments clearly take presedence, bizarre as they may have been.