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Stocks, Dollar, & Bond Yields Sink After Fed Warns "Tighter Monetary Policy Than Otherwise Is Warranted"

The initial reactions wre modest but directionally 'correct' given the dovish bias to the Fed Minutes - stocks are up, bonds are up (lower in yield), and the dollar is down. But then traders read the warnings that due to excessively easy financial conditions, " a tighter monetary policy than otherwise was warranted." and stocks sank. There were 3 dovish quotes: 1. "Many participants, however, saw some likelihood that inflation might remain below 2 percent for longer than they currently expected, and several indicated that the risks to the inflation outlook could be tilted to the downside.
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