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Today's Economic And Political Docket - FOMC Minutes, Toomey On The Debt Ceiling, Hearing On Securitization

Tyler Durden's picture




 

The only thing on today's light economic calendar is the FOMC’s April 26-27 meeting minutes, as the Fed proceeds to monetize bonds now that the debt ceiling has been reached.

11:00: Modest $1.5 - $2.5 billion POMO closes
with the Fed buying bonds in the long end (08/15/2028-05/15/2041) of the curve

14:00: FOMC minutes (April 26-27 meeting): Following the chairman. This afternoon the FOMC will release minutes from its April 26-27 meeting. For the first time, the minutes come after a detailed post-meeting press conference from the Fed chairman, and they may therefore be a bit less valuable than usual. With regard to content, we expect their tone to be similar to the press conference. At that event Chairman Bernanke argued that weakness in growth during Q1 was due to mostly transitory factors, though the Fed saw more prolonged weakness in construction activity. On inflation, he said that higher commodity prices “account for pretty much all” of the increase in the Fed’s inflation forecast over the short-term, and that the committee would continue to watch inflation expectations closely.
 
A number of issues related to the Fed’s eventual exit from accommodative policy will also likely turn up in the minutes. At the post-meeting press conference, Mr. Bernanke said that “an early step would be to stop reinvesting all or part of the securities which are … maturing”. The minutes will likely also note that halting reinvestment will be one of the earliest steps toward tightening. There is slightly more uncertainty about other aspects of the exit process. In particular, CNBC recently reported that there was no longer a consensus among the FOMC that asset sales would come after rate hikes. We continue to believe that the FOMC leadership would prefer to sell assets only in the distant future—if at all—based primarily on testimony from Chairman Bernanke last year. The minutes will likely include a discussion of this issue, but we doubt they will signal broad support for early asset sales.
 
Finally, one surprise in the press conference was Chairman Bernanke’s definition of “extended period". In response to a question, he said “Extended period suggests that there would be a couple of meetings probably before action”, which indicated a shorter time commitment than the six months or longer we previously had thought. If the extended period language came up in a discussion of exit strategies, the minutes could clarify this issue.
 
19:00: St. Louis Fed President James Bullard speaks to the Money Marketeers group. Q&A scheduled.

And meanwhile in Washington we get a debt limit discussion, two securitization-related events, and another energy vote that is expected to fail...

9:30 am - Securitization. The Senate Banking Committee will hold a hearing on the state of the securitization markets, with several industry witnesses testifying.

10:00 am - Sen. Toomey speaks on debt limit. Senator Toomey (R-PA) is the lead sponsor of legislation to clarify that debt service would be the top federal priority in the event that the debt limit constrains net borrowing, with Treasury able to prioritize other federal spending.

10:00 am -- SEC rating agency meeting. The SEC will hold a meeting to consider proposing new rules to implement Dodd-Frank rules related to credit rating agencies and other providers of diligence for asset-backed securities.

2:30 pm - Senate votes on domestic oil production legislation. The bill includes measures similar to those that passed the House earlier this month. These require the Dept. of Interior to conduct lease sales in the Gulf of Mexico and off the coasts of Virginia and Alaska, extend for a year leases were stalled by last year's drilling moratorium, and expedite drilling permitting decisions. The bill is not expected to reach the 60 votes necessary to pass. Legislation to repeal $21bn in tax preferences for oil/gas producers failed yesterday in the Senate, as expected

 

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Wed, 05/18/2011 - 08:05 | 1286462 Conrad Murray
Conrad Murray's picture

Protests against Spain's economic crisis took a new turn Wednesday as social media networks fueled calls for demonstrators to take to the streets before local elections a few days away.

Thousands returned late Tuesday to Madrid's central Puerta del Sol plaza -- where the main protests began Sunday.

http://www.cnn.com/2011/WORLD/europe/05/18/spain.protests/

http://www.youtube.com/watch?v=n4yX6GlH-yk

 

Almost forgot, FOR GREAT JUSTICE!

"Dominique Strauss-Kahn may have more to worry about than a possible prison sentence.

The IMF chief's alleged sex-assault victim lives in a Bronx apartment rented exclusively for adults with HIV or AIDS"

http://www.nypost.com/p/news/local/imf_accuser_in_apt_for_hiv_vics_oZmUk...

Wed, 05/18/2011 - 08:50 | 1286563 Kina
Kina's picture

Now if only the same karma visit itself upon some within JPM and the CFTC.

Wed, 05/18/2011 - 08:17 | 1286490 SP666_IsComing
SP666_IsComing's picture

All news everywhere now is completely worthless and irrelevant except for ONE!

The truth will finally come crashing down in October of this year. There is no escape. It will be impossible to prop these markets through October, impossible.

Comet Elenin is going to be a real nasty little bitch.  The earth will pass through its comet tail in October.  The solar winds will be cut in half for days.  It’s impact will be ENORMOUS.  It will cause the earth’s mantle to vibrate, it will create unimaginable weather of wind and rain.  It will cause destruction beyond comprehension.  Dust particles from the tail will create enormous rainclouds on a global scale.  Sea levels everywhere will rise, a great deal higher than right now.

How many Fukushima type nuclear power plants are sitting in the US? All of them are designed to blow sky-high when they lose power.  Elenin is going to cause a worldwide blackout and hell will fall on the earth when power is lost everywhere.  How many Fukushima’s in the US are priced into this market right now?

SP666 is going to be taken out when Elenin passes, there is no doubt.

We are about to start the perilous journey down the other side of the human population growth impulse spike.  Literally billions of people are going to die when Elenin strikes, and world population will continue to tumble when all infrastructure is destroyed and food becomes as scarce as gold. 

Bankster criminal elite families have been planning for this event for millennium.  They’ve used their central banking thievery machines to steal the world’s gold, created paper mountains of bullshit, all for this event and its all about to go up in smoke, as planned.  This comet is old.  Only those “elect” few have known of its existence and timing.  The old books of Enoch for example, and the old stories of the great flood, the Epic of Gilgamesh, etc. Even some old jewish texts allude to this comet as being the coming “Messiah”. 

It is going to be downplayed by the lying ass media till it smashes everything. There is no stopping it. The destruction to come is not a joke. It will be very very real.

SP-666 is coming, and very soon.

Wake up world. Protect yourselves.

Wed, 05/18/2011 - 08:30 | 1286520 Ancona
Ancona's picture

Death.....will be a welcome reprieve

Wed, 05/18/2011 - 09:22 | 1286644 bigdumbnugly
bigdumbnugly's picture

SP, you give crackpots a bad name.

Wed, 05/18/2011 - 10:05 | 1286787 carbon based unit
carbon based unit's picture

 

can i get a side-order of rapture with that, since you're lacking the fries to complete a happy meal?  

 

closest approach is projected at 22mm miles ... this one is regarded as rather small.  if/when it develops a 'tail' we might enjoy a perseid-style meteor shower and thats only if we pass through it.  as to halving the solar wind ... that will be detrimental ... how exactly?  the earth's magnetic field dramatically reduces the influence of the solar wind at the surface; its not like increasing solar winds would be a 'good thing'.

 

 

Wed, 05/18/2011 - 08:37 | 1286527 MarketFox
MarketFox's picture

Rating Agencies....

 

Along with the accounting profession.....have been given a free ride away from the prison cells that THEY belong in.....

 

They ought to be given another name .....such as The Professional Liars of America.....

 

They are highly responsible for the current American economic calamity.....

....................

 

The rating agencies and accounting firms should be replaced by a new internet based coding system......whereby the data would be made available in an unalterable fact based format....

 

Then let the chips fall where they may.....

 

The accountants and rating agencies used their previously earned good will.....to play a big one on the unsuspecting.....

 

Nothing more.....nothing less.....

 

 

 

Wed, 05/18/2011 - 10:05 | 1286786 carbon based unit
carbon based unit's picture

moved to 'reply' area

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