FOMC Does Exactly What Market Told It To Do

Tyler Durden's picture

Just as consensus demanded expected, the FOMC transformed sterilized 'Twist' into unsterilized QE4 in addition to QE3's MBS buying and lowered economic forecasts - dropping calendar-based rate guidance unchanged with a shift to "Evans-Rule"-like threshold-based guidance. High inflation, forget it; 'lower' unemployment, naah; market wants 'moar' so market gets 'moar'. $4 Trillion balance sheet here we come (check to Draghi's OMT and Spain or EUR 'richness' crushes hopes of recovery).

  • *FED BOOSTS QE WITH $45 BILLION IN MONTHLY TREASURY PURCHASES
  • *FED TO KEEP BUYING MORTGAGE BONDS AT PACE OF $40 BLN PER MONTH
  • *FED SAYS MONTHLY PURCHASES TO TOTAL $85 BLN
  • *FED ADOPTS ECONOMIC THRESHOLDS FOR POLICY TIGHTENING
  • *FED: RATES TO STAY EXCEPTIONALLY LOW WITH JOBLESS ABOVE 6.5%
  • *FED: RATES TO STAY LOW WITH INFLATION SEEN AT 2.5% OR LESS

Disappointingly for AAPL investors, there was no explicit decision to monetize mini-iPads (or their own subsidized student loan debt in the ultimate reacharound).

Pre- And Post- Levels (post = 15 mins after news) - small moves in general

 

 

Redline comparison with October statement: