Markets briefly rallied on a CNBC interview with NY Fed president John Williams. It didn't last long.

Message of the Day

New York Fed President John Williams Says the "Central Bank is Listening to the Market", and everyone else too.

“We are listening very carefully to what’s happening in markets for two reasons. One is financial conditions have [an] important influence on [the] economic outlook,” Williams said on “Squawk on the Street ” in an interview with CNBC’s Steve Liesman. “Second, I think we are hearing something important from markets, and that is a concern risk to the economy and potential further slowdown than we currently expect in our base case.”

It’s not just looking at the “hard GDP data” or “CPI data,” he added. “We’re listening to the message of the market.”

He said Friday that this week’s rate increase was “fully justified and makes sense,” but he added the Fed is open to reconsidering its views on rate hikes next year. Stocks rose sharply during Friday’s interview, but then faded.

Implied Message

The implied message was that the Fed would not let the stock market for or if it did, the Fed would adjust policy.

Fed Listening

The Fed is listening, to everything. What a hoot. The market does not believe the Fed's implied message and neither do I.

This is another one of those "Too Late To Matter" concepts: Too Late To Matter: Fed-Sponsored Economic Bust Coming No Matter What.