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Fed coughs, world blanches, yuan unfazed
(ATF) Shortly after 2pm New York time yesterday, US Treasury yields jumped, stocks dropped sharply and the dollar registered its first gains in over a week. What grave disaster had struck? The equivalent of a natural disaster in the world of finance: The US Fed had just released the minutes of the July 28/29 FOMC meeting and those minutes contained some unforeseen and highly unwelcome passages. First off, the minutes portrayed a rather more gloomy economic outlook than Fed chair Powell had let on in his post-meeting press conference. Second – somewhat technical, but highly meaningful to market professionals – the ... (full story)