Fed Minutes Released: "Some FOMC Members Think QE3 Would Be Appropriate"

Tyler Durden's picture

The only section that matters: "Some participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate and if inflation returned to relatively low levels after the effects of recent transitory shocks dissipated, it would be appropriate to provide additional monetary policy accommodation....A few members noted that, depending on how economic conditions evolve, the Committee might have to consider providing additional monetary policy stimulus, especially if economic growth remained too slow to meaningfully reduce the unemployment rate in the medium run." Translation: QE3?

 

Fed Minutes

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carbonmutant's picture

At one point, McConnell said: "I have little question that as long as this president is in the Oval Office, a real solution is unattainable."

oldmanagain's picture

What is getting very obvious is the leaking of Fed minutes, and other Gov. reports.

YesWeKahn's picture

Can someone check the temprature of these idiots?

AmazingLarry's picture

I'm so long racoon eyes right now.

Mortimer's picture

"Turn those machines back on!"

Hondo's picture

They will still have a very, very large hurdle to get over to implement any QE3 proposal.....I for one don't believe it will ever happen.

MrMorden's picture

"recent transitory shocks"...LOL.

optimator's picture

Looking at todays gold chart I think the FED released the minutes very early this morning to those on the inside loop.

oldmanagain's picture

European markets were down limit overnight. Then rallied remarkably.  Along with our overnights as well.

This is now old news and is meeting selling.

SmoothCoolSmoke's picture

Markets need to go red for the day.  That will confuse the shite of the greedy QE3-want'n bastards. 

John McCloy's picture

Which means the market will continue lower until QE3 can be pulled off which also means stay short and get your silver 2x etf right around Jackson Hole. All they have left is printing since nobody else can buy the debt.

   As stated 2 years ago 0% rates until the greatest bubble known to man has been created. I cannot believe we are ending 2011 and there is still 0% rates and prolonged period language. Our entire economy is forever will be the printing press until the great reset.

Bay of Pigs's picture

+1

And puts gold and silver at multiples of their current values.

SheepDog-One's picture

Total confirmation that all theyve got left is printing and direct debt monetization. Yipee lets throw a damn party.

MrMorden's picture

"recent transitory shocks"...LOL.

YesWeKahn's picture

More, more, more, don't stop, ...

Encore, encore, it is so good ...

nobusiness's picture

Wall Street retards just realized they will need to tank the market first, then get QE3. 

SheepDog-One's picture

The problem with tanking the market is they cant do it, if 401K holders saw big market drops, many of them are likely to want to cash in their holdings and place sell orders to a totaly empty market. That would be a chain reaction disaster.

walküre's picture

EURUSD 1.45 with partial Greece default priced in and Italy promising to put up more porn stars in politics.

dcb's picture

It didn't improve the employment situation three times, so we must do more. these sack of shits. "if the market goes down the investment banks may loose some money on their holdings"> that is what they really mean.

equity_momo's picture

Smells like panic

SheepDog-One's picture

Its total desperation, no question about it. We're supposed to throw a party because our only option left is to keep printing and monetizing the debt? The country, and the world, has totaly lost its damn mind.

MiningJunkie's picture

Surprise, surprise....that the Fed will print more money? Gimme a fucking break. Just stay LONG gold and silver and don't let yourselves get bucked off the bull because you listen to those CNBC bobbleheads.

MiningJunkie's picture

Surprise, surprise....that the Fed will print more money? Gimme a fucking break. Just stay LONG gold and silver and don't let yourselves get bucked off the bull because you listen to those CNBC bobbleheads.

r101958's picture

Interesting how this is released after the big treasury sale today.

MiningJunkie's picture

Please forgive the double post....

Hedgetard55's picture

DOW red again. The hopium high gets shorter and shorter in duration.

SheepDog-One's picture

Stock hopium shorter duration highs....but gold has lost nothing still at 1570.

Inky99's picture

Where do I sign up for the free money?   

swissinv's picture

just let the Republicans know that higher taxes are required to finance QE3 - let's go;)

SheepDog-One's picture

Hmmm yea....who's gonna pay for all this 'Bags o free cash QE3 good news' BTW?

digalert's picture

Translation:

economy may need Obama 2012 campaign stimulation

SheepDog-One's picture

The banksters dont give a rip about ass-puppet Obama he can be replaced by any other puppet and get the same -65% disapproval rating. Big deal. What the banksters are worried about is theyre stuck, they still have HUGE debt with no way out. People will be broke and looking at $5+ gas and double grocery bills by year end if someone doesnt stop these maniacal monetizers FAST!

Clint Liquor's picture

Ron Paul on TV this morning said, one way to reduce the National Debt would be to declare the Treasuries the FED owns null and void. He basically said, they just bought them with money they created out of thin air, so why should the US Taxpayers honor them.

 

SheepDog-One's picture

Of course! Same with stocks, does anyone actually believe we'd be at 5,000 points lower on the DOW without the daily pumping campiagn? Declare the Treasuries the FED owns as ILLEGITIMATE and ILLEGAL and charge them all under RICO organized crime statutes...anyone with any balls left in govt??

Waterfallsparkles's picture

Clint,

Ron Paul is right on.  Just declare the Treasurys bought by the FED null and void.  That would solve the Problem.  The only ones would suffer would be the Shareholders in the FED.  But, why should they profit?

Clint Liquor's picture

Why would the FED shareholders suffer if they never put any money up to buy the treasuries in the first place?

PaperBear's picture

Every other sentence on CNBC right now has "QE3" in it.

phraseshifter's picture

"The one who smelt it...dealt it"

DollarDive's picture

Look for a break below the 200d sma.  ES is going to make new lows soon.  Is this news of "QE3" new ? Does anyone really think that this news was not really priced into the market ? I think not.  From the begininning the FED has always said that they'd provide additional stimulus.  They always say they'll try to pull back, but they'll do whatever they need to do to support things.  I think they're going to let this drop to force a budget deal.....we'll have to watch and wait.

aviat72's picture

So the worst kept secret is out. QE3 was undergoing sea-trials all the time.

 

TPTB will now take the market down to create the conditions to facilitate her launch. So SPX to 1150 then 1550. Buy GC but not CL. To facilitate the launch of QE3 CL will be broken. The spread between WTI and Brent is already showing TPTB's power. Now CL will be taken down to create conditions ripe for Ben to launch her.

Troublehoff's picture

Hi, I'm a European Central Bankster. I am a member of the unelected European political elite, and I will force my noble socialist vision on you ignorant sheeple whether you like it or not. When I am not getting my dick sucked, I am playing god with other peoples' money.

 

..and you SPECULATORS... you'd better not start turning vigilante on our government bonds - it will not be tolerated! We will use the mighty ECB to monetize the debt of countries living less productive lives at the expense of hard working taxpayers in our northern states. Yes, we own them. They are our milk cows, and everyone knows, you need a lot of milk to make a socialist European superstate

How dare they... speculate

bardian's picture

Decreased assest prices are not required to initiate QE. The only thing that has to happen is a sufficiently large enough drop in govt revenue or revenue projection relative to debt.

alexanderstollznow's picture

that's right: decreased asset prices are not necessary to initiate QE.  that would no doubt be because the Fed mandate does not include asset prices.  it is actually a dual mandate of targetted inflation and unemployment. 

well, golly, that is just what is being discussed in the full paragraph from the Minutes, unexpurgated by ZH to suits its own biases. it also shows that this whole thread is yet another lot of chatter about nothing, because all the FOMC did was discuss the issue.  as you would expect, given that is their duty.

 

Participants also discussed the medium-term outlook for monetary
policy. Some participants noted that if economic growth remained
too slow to make satisfactory progress toward reducing the
unemployment rate and if inflation returned to relatively low
levels after the effects of recent transitory shocks dissipated,
it would be appropriate to provide additional monetary policy
accommodation. Others, however, saw the recent configuration of
slower growth and higher inflation as suggesting that there
might be less slack in labor and product markets than had been
thought. Several participants observed that the necessity of
reallocating labor across sectors as the recovery proceeds, as
well as the loss of skills caused by high levels of long-term
unemployment and permanent separations, may have temporarily
reduced the economy’s level of potential output. In that case,
the withdrawal of monetary accommodation may need to begin
sooner than currently anticipated in financial markets. A few
participants expressed uncertainty about the efficacy of
monetary policy in current circumstances but disagreed on the
implications for future policy.

 

in the meantime, for every rapid anti Fed freak on this forum there is someone else in the world - and usually with more impressive credentials - saying there should be further QE:

 

   July 12 (Bloomberg) -- The Federal Reserve should engage in
another round of quantitative easing as growth in the U.S.
economy remains slow and inflation concern remains low,
according to Bradford DeLong of the University of California at
Berkeley.
     “I don’t see any argument against QE3,” Delong said
during an interview on Bloomberg Television’s “Surveillance
Midday” with Tom Keene.

Bobbyrib's picture

If at first you don't succeed, print, print again.

Buck Johnson's picture

QE3 is coming and it may happen before christmas, if the economy hasn't imploded by that time.