The news release hit the tape right after the stock market opened this morning: "Philadelphia Fed President Charles Plosser said Friday there are some risks to inflation in the medium to longer run unless monetary policy is tightened more quickly than the Fed anticipated in its last statement" (LINK).
The S&P 500 stock futures dropped 4 points on this and the precious metals went into typical cliff-dive mode, with March silver dropping 50 cents from the time the statement hit the tape to its low on the day.
Plosser's remarks are either patently misleading or his view is derived from gross negligence in analyzing real world data, the latter flaw of which is typical of "ivory tower" economists and Fed officials. We can use short term trading strategies to take advantage of the effects on the market caused by deceptive and misleading comments by Fed officials who have their head buried in the sands of fantasy.
I guess Plosser doesn't follow business and economic news, because the trade deficit for November released today was significantly higher than expected. In fact, the trade deficit was 20% higher than was forecast by Wall Street's brain trust.
I can't recall EVER seeing a miss this big to the downside for import/export numbers (-$48.7 billion vs. the -$41.1 billion consensus forecast by Wall Street's finest ...