Market Angry About Yellen’s “Is NIRP Legal” Confusion

(Before It's News)

Just as we detailed last week, and it appears Rep. Hensarling has been reading, when pressed on The Fed’s legal authority to take interest rates negative, Janet Yellen gushed that “Fed authority for negative rates is still a question.” This appears to have been taken as bad news by the market (cutting off the potential easing paths of the future in a world of NIRP), and stocks, crude, USDJPY have all tumbled.

Furthermore, she sounded a little hawkish:

• *YELLEN: I DON’T EXPECT THE FOMC WILL FACE RATE-CUT OPTION SOON
• YELLEN: I DON’T THINK IT WILL BE NECESSARY TO CUT RATES

The reaction – more disappointment… as USDJPY crashes…

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