Tuesday, August 30, 2011

FOMC minutes matter NOT, after Kocherlakota and Evans

If Evans' remarks this morning were not enough to confuse the traders, Mr. Kocherlakota threw his share into the mix. He was one of three dissenters at the last FOMC meeting, where he apposed the decision to keep rates at 0% for 2 yrs. Today he said that he will not dissent again, in order to make it look like Fed speaks with one voice. But sir, why dissent in the first place? Now I want to know who else would like to dissent but will not? We will never know. FOMC minutes will not reveal that.
Is this why market started to turn around after Kocherlakota's remarks hit the wires? I am really starting to think that market is getting ready to punish the Fed with a vote of no confidence. Especially after such a public disarray. But let's wait for the circus at 2 pm. I have two scenarios, both are not pretty - sell here, or sell at 1220-30.

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