Why the Fed rate talk was 'a bunch of nonsense'

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Market expectations amid Fed cloud

The Federal Reserve was never hiking rates four times this year. Investors didn't believe it, and now Fed Chair Janet Yellen has all but explicitly acknowledged it.

Indeed, Yellen's blockbuster speech Tuesday assuring that the central bank would go slowly on future adjustments to monetary policy only caught some of the market by surprise. Others realized there was virtually no chance of a hawkish Fed in 2016.

"Central bankers at the Fed bark but they won't bite," Peter Schiff, frequent Fed critic and founder of Euro Pacific Capital, told CNBC.com. "I knew all that talk was a bunch of nonsense."

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