Yellen Unveils $2.5 Trillion Tax Reclamation Plan, Fed Threatens To Withdraw Accommodation As Pandemic Ends

Stocks just got hit with a double-whammy of hawkishness as Fed’s Kaplan threatened to withdraw accommodation as the pandemic ends and Treasury’s Yellen unveiled a plan to grab back $2.5 trillion in taxes from corporations.

Just a week after his last warning sank stocks, Federal Reserve Bank of Dallas President Robert Kaplan is at it again.

Last week he opined that:

“I’m concerned about excess risk-taking and if that excess risk-taking goes too far, whether it creates excesses and imbalances, that could ultimately create challenges,”

This week he reiterated that fear and went further as stocks began to slip around 1115ET when Fed’s Kaplan warned:

“I do worry about excesses and imbalances,” adding that “failing to communicate Fed exit could stoke risk-taking.”

Stocks, most notably Small Caps, accelerated their

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