Plosser Makes And Breaks Market

If you believe in Freedom Of Speech, you just have to extend the right to Fed members.  So who can get mad at Fred Plosser, President of the Philadelphia Fed, who made a speech this morning and said that the Fed was on the right track to begin curtailing asset purchases but then added that interest rates may have to go up sooner than most of us expect.  If there is anything the market is afraid of, it's interest rates.  (For one (major) thing, it makes dividend paying stocks less attractive if bond yields improve.)

As soon as that speech hit the news wires, the Dow extended downwards from about 16,470 to 16,398.  But there is a Plosser antidote:  other Fed members may make different comments.