Home Dollar Dollar Jumps, Stocks Dump As Fed Disappoints POMO-Primed Markets

Dollar Jumps, Stocks Dump As Fed Disappoints POMO-Primed Markets

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US equity markets are not happy that The Fed failed to dover on its dovish cut hopes and utterly ignored the ongoing liquidity crisis in short-term money markets.

The dollar is spiking…

Source: Bloomberg

And stocks dropping…

30Y Treasury yields are holding at the lows of the day but not extending

Source: Bloomberg

But 2Y yields are spiking on the apparent hawkishness…

Source: Bloomberg

Dramatically flattening the yield curve…

Source: Bloomberg

As the market begins to shift to pricing in less than one more rate-cut by year-end…

Source: Bloomberg

Can Jay talk his way out of this? Or make it worse?