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FOMC Statement: "Exceptional", "Extended", Hoenig Dissents
Another completely irrelevant announcement from the "ZIRP4EVA" Fed. The only sane human being, Tom Hoenig, continues to have no friends. Only notable part of the statement: "Housing starts remain at a depressed level. Financial conditions have
become less supportive of economic growth on balance, largely
reflecting developments abroad." On Hoenig's dissent: "Voting against the policy action was Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to a build-up of future imbalances and increase risks to longer-run macroeconomic and financial stability, while limiting the Committee’s flexibility to begin raising rates modestly." Precisely what he said two months ago: no change in Hoenig's dissent. No change.
Release Date: June 23, 2010
For immediate release
Information received since the Federal Open Market Committee met in
April suggests that the economic recovery is proceeding and that the
labor market is improving gradually. Household spending is increasing
but remains constrained by high unemployment, modest income growth,
lower housing wealth, and tight credit. Business spending on equipment
and software has risen significantly; however, investment in
nonresidential structures continues to be weak and employers remain
reluctant to add to payrolls. Housing starts remain at a depressed
level. Financial conditions have become less supportive of economic
growth on balance, largely reflecting developments abroad. Bank lending
has continued to contract in recent months. Nonetheless, the Committee
anticipates a gradual return to higher levels of resource utilization
in a context of price stability, although the pace of economic recovery
is likely to be moderate for a time.
Prices of energy and other commodities have declined
somewhat in recent months, and underlying inflation has trended lower.
With substantial resource slack continuing to restrain cost pressures
and longer-term inflation expectations stable, inflation is likely to
be subdued for some time.
The Committee will maintain the target range for
the federal funds rate at 0 to 1/4 percent and continues to anticipate
that economic conditions, including low rates of resource utilization,
subdued inflation trends, and stable inflation expectations, are likely
to warrant exceptionally low levels of the federal funds rate for an
extended period.
The Committee will continue to monitor the economic
outlook and financial developments and will employ its policy tools as
necessary to promote economic recovery and price stability.
Voting for the FOMC monetary policy action were:
Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James
Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S.
Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the
policy action was Thomas M. Hoenig, who believed that continuing to
express the expectation of exceptionally low levels of the federal
funds rate for an extended period was no longer warranted because it
could lead to a build-up of future imbalances and increase risks to
longer-run macroeconomic and financial stability, while limiting the
Committee’s flexibility to begin raising rates modestly.
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The currency crash/unemployment wave kicks off beginning June 28, with markets shaking quaking event. The currency woes of July will build to a crisis point of insurmountable proportions by August 1, and the crushing economic reality will come shining through for all to see. This summer will be the absolute last peak in the markets structure, while this fall will be three months of vomiting. The summer debt explosions go to such heights as to create massive overwhelming hyper-inflation in Fall that sweeps across countries globally with such ferocity bringing down governments. Riots and mob unrest will become a regular news story as the currencies are shredded publicly and planetary panic to buy precious metals overwhelms the censors in the propaganda press. June 28 provides the flood word for the precious metals, as well as the floating away of silver from gold. New reorganized currencies will not gain support and will be laughed at when introduced. The metals, especially silver, will from June 28 onward express their own destiny separate from the currencies. -HPH
June 26-28 Gulf coast/Florida region, thunderstorms deluges, tornadoes/waterspouts, followed by flooding later. Tropical Storm forecast with 80% confidence. - Piers Corbyn (weatheraction)
Starting soon and over the remainder of this year the oil volcano will place pressures of irresistible magnitude on the populace forcing the relocation of tens of millions of Americans, creating chaos in America. Poison air and gas clouds will be visible even within the mainstream media. -HPH
Thanks for the advance notice. Will make plans accordingly.
what's HPH?
The fed what a joke, crooks in suits
From a copy of the original draft:
Exceptional? What is??? The Working Group, at flash crashing/trading stocks!!!!???
Oh, and once again....
Hoenig will be the next Fed Chairman, if there is a next Fed Chair. This is merely a beta test...they are checking to see who and how many 'Mercans are watching/listening/thinking.
Hoenig=McCrystal
Burn the Fed!!!
Just developments abroad? Nothing to do with anything back home?
Most people have difficulty with letting go of Sunk Cost -- the Feds are no different. They have committed to this course of action and will not change at this late stage.
Only an exogenous shock is going to stop them in the track...
So, Benny's plan is to watch Europe implode, to implode our system the rest of the way, and he can blame it on PIIGS. As if we expected anything different?
What, did the FOMC just mimeogragh off a copy from the last meetings report?
ZIRP4EVA
And the wheels on the bus go round and round...
http://twentypercent.tv/2010/06/23/raining-oil-on-louisiana/
On the heels of this report we have a Eur/Dlr vs. market correlation breakdown...which will break down and follow the other?
I feel better.... especially considering the millions of jobs lost in the gulf coast states as a result of the BP disaster, oh and those 1.2 Million census workers will be returning to the U3 number starting this month as well... definitely improving , yep no question about it.
watch for the census to be extended. "sure we are suppose to do it every 10 years....minimum"
What they meant to say is: "We are supposed to do the census FOR 10 years"
IIRC, the Census workers are set up so that they don't go on U3 when their gig is up. They go onto U6, and the MSM doesn't pay attention to that.
"no change." precisely the equivalent of what one can expect to earn in interest in a savings plan 4eva.
"Household spending is increasing but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit."
___
It's amazing how they never mention debt.
isn't this a semantic error ?!
Ain't it? "Lower housing wealth" is as close as they dare to go. As in, houses are no longer an ATM, and that's why the economy cannot recover since incomes net of borrowing against houses, in one form or another, result in a 50% loss of purchasing power. Thus, where the Economy = 70% consumer spending, and consumer spending is reduced 50%, equals 35% contraction in the economy. So why do they sit around waiting for "recovery?" It makes no sense, except as a modern version of Cargo Cult thinking. This is really getting stupid.
Yawn. Wake me up when Ben is dangling from a tree.
fed = synagogue of satan
Temple of Contempt
WTF just happened to the S&P....oh wait bad news so it sent the markets to the moon.
Yaaaa, more free money. Rally on!
ok, fed is in continuous denial ... this 'student of depression' who's missing the context is just a joker like the other 2 timmy & barack
still ppl (aka machines) seem to enjoy playing the hot potato game
i'm looking for a crash ... a real one this time, before the end of the summer
I'm beginning to believe we won't see a crash. With machines and free money running the show, what would it take to crash a market set up like this? This isn't your daddy's market anymore.
this isn't built into their model... now it's just a matter of when
The Nikkei has been in a bear market from 1990.
From 1990 to 2000, BOJ cut rates from 8+ to 1%, when they couldnt cut anymore the Nikkei took a 60+% dump from 2000 onwards.
Now poised at 10000+ in the DOW the fed has run out of IR bullets, unless thye plan on exhausting all confidence in the QE cannon, we'll see another dump in the asset markets soon.
But I don't have a PhD or work for a major wall street firm so what do I know.
What's with the 100 points DJIA meltup? Nothing good came out of the Fed' statement. This market is getting more crazy by the day.
patience my dear, patience
it's all gone. things make sense again, sort of...
As fast as AAPL tumbles over, this shit is going down.
AAPL can't tumble. Ever. It is the economy.
It's the general, when the general dies... Good luck being long AAPL when the market tanks. Maybe this is one of those "defensive" stocks that "value investors" recommend to their clients so they "won't lose as much" when the market tanks... We all want the market to tank straight down, but countermoves will come, let's just hope the down move the last couple of days is not a countermove...
Yea Benny, F#$*& over any savers that are left!
Sheepel....
You will spend,
You will spend,
You will spend,
You will spend,
You will spend,
You will spend,