Results of Fed's Hawkish Comments

From Dow Jones Newswire's Market Talk

12:03 (Dow Jones) Recent comments by a revolving door of Fed officials have crushed stocks and investors' confidence. But they're doing exactly as they should, says Kent Engelke, capital markets strategist at Anderson & Strudwick. The Federal Reserve cannot be complacent and the moment it declares inflation as a non-factor it reappears," Engelke says. "Moreover it must continually repeat its inflation mantra to rationalize its actions even as the economy appears sluggish by some data points."

Exactly what I said eight days ago. Despite all of the talk of inflation, the ten-year is rallying strong today and driving the yield down to 4.39%. The yield curve is also flattening, which will put pressure on bank NIMs.