ML-Implode News - Surprise Lael Brainard Fed speech throws stock markets for a loop

With news that the Fed had teed up Brainard, who has been even more in favor of keeping rates where they are than Fed Chair Janet Yellen this year, market participants wondered whether the central bank was going to set up an unexpected rate hike at the Sept. 20-21 meeting.
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Prudential's Krosby believes Fed hawks are motivated less by economic data and inflation expectations than they "in fact are worried about financial stability, but for whatever reason they don't want to come out and scare the market."

"Most of the market believes the Fed lost their natural chance to raise rates," she said. "Market participants believe the Fed lost that chance and perhaps is now trying to make up for lost opportunity."

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Surprise Lael Brainard Fed speech throws stock markets for a loop