“We Are Headed For Another Train Wreck”: Bill Ackman Blames Janet Yellen For Restarting The Bank Run
- “We Are Headed For Another Train Wreck”: Bill Ackman Blames Janet Yellen For Restarting The Bank Run
by Tyler Durden, https://www.zerohedge.com/
Yesterday morning we joked that every time Janet Yellen opens her mouth, stocks dump.
Well, it wasn’t a joke, and as we repeatedly noted today, while Jerome Powell was busting his ass to prevent a violent market reaction – in either direction – to his “most important Fed decision and presser of 2023”, the Treasury Secretary, with all the grace of a senile 76-year-old elephant in a China market, uttered the phrase… … and the rest was silence… or rather selling.
Commenting on our chart, Bloomberg’s Mark Cudmore noted it was Yellen who was “to blame for the stock slump”, pointing out that “the pessimistic turn in US stocks began within a minute of Janet Yellen starting to speak.”
The S&P 500 rose almost 1% in the first 47 minutes after the Fed decision. Powell wasn’t the problem either: the index was 0.6% higher in the first 17 minutes after his press conference started.
Why am I picking that exact timing of 2:47pm NY time? Because that is the minute Yellen started speaking at the Senate panel hearing. The high for the S&P 500 was 2:48pm NY time and it fell more than 2.5% over the subsequent 72 minutes. Good effort.