Krosby's comments after the release of the minutes from the Fed's last meeting, which said policymakers were unanimous in the view that the focus should remain on inflation rather than economic weakness. Many took that to mean that a rate hike was more likely than a rate cut.
Kevin Caron, market analyst for Ryan Beck, said the market wanted to hear that the Fed would ride to the rescue and add liquidity to the economy.
“To look at a Fed that is now data dependent -- and we know the stimulus they can impart on the economy takes six to 12 months to have bite -- is a fairly scary place to be,” Caron said. “So, for the Fed to be this far behind the curve and staying data dependent and not getting out in front is something that’s worrisome. I think that’s part of why the market is responding the way it is at this point.”