A divided US Federal Reserve has been eroding expectations and hopes for the Bernanke PUT.
From the Bloomberg,
A few Federal Reserve policy makers said the central bank will probably need to take more action to boost the labor market and meet its inflation target, according to minutes of their June meeting.
“A few members expressed the view that further policy stimulus likely would be necessary to promote satisfactory growth in employment and to ensure that the inflation rate would be at the Committee’s goal,” according to the record of the Federal Open Market Committee’s June 19-20 gathering released today in Washington.
Deferment or reluctance to further inflate translates to a bursting of the asset bubbles—the RISK OFF environment.
The S&P 500 on a downdraft.
Yet once markets have fallen significantly enough they will likely reverse course and pursue aggressive inflationism.
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