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:

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SoNH80's picture

Charge it!

 

 

camaro68ss's picture

by my calculations and based on 1/2 lifes. QE12 will start around July 15th 2013. QE13 will then start on july 16th 2013. We got 7 months

fuu's picture

$32,473.21 per second...FOREVAR!

Boris Alatovkrap's picture

Boris is not remember for QE, one day is wake up and bank account balance is double. QE2, is double again. QE3, QE4, is wake up for bank account double. No, wait, is dream only, but dollar (or ruble) is now 1/8 value. Next life, Boris is born a Rothschild, tired of life as serf.

TruthInSunshine's picture

 Even in "sovereign" Russia, Rothschild owns Putin!

kahunabear's picture

When do the huge Charles Evans statues and images go up in the public squares?

fuu's picture

Kitco we have liftoff. Err umm.

icanhasbailout's picture

Inflation at 2.5%, eh?

 

My benchmark 99 cent box of pasta from two years ago is now at $1.65.

 

As there's been no particular shortage of that product relative to any other, I'd say actual inflation is already running at near 30% y/y.

 

 

Boris Alatovkrap's picture

Boris is benchmark by dilution of basic commodity like Vodka.

2005, Vodka to Ethylene Glycol 10%

2007 - 25%

2009 - 55%

...Today, Boris is just drink Ethylene Glycol.

The trend is your friend's picture

Have you adjusted the numbers for the reduced quantity in the box?  Food Inflation is probably running higher

GolfHatesMe's picture

No it isn't, neither is coffee nor ice cream  time for Tiny utensils

Esso's picture

A pound of smoked sausage went from 16 to 14 to 9 ounces double-quick.

TruthInSunshine's picture

lmao...Kindergarten classes being taught the "new math" as we speak, across the country

"1 pound equals 12 ounces."

icanhasbailout's picture

I'm Italian enough that they couldn't reduce the amount of pasta in a box without me noticing. I've been attentive to changes in product sizes; the great thing about the pasta benchmark is that the product size has not changed, which is why it reveals a level of inflation obscured by product size changes in other products.

And yes, I've noticed that the tricolore pasta is indeed down to 12 oz. but that's not my benchmark.

YuropeanImbecille's picture

What are the gooks saying about this? What will they do with their 3 Trillion joobux?

EscapeKey's picture

It's a little known fact that the Fed can print unlimited amounts of money and it has no repercussions whatsoever. That's what the history of John Law taught us. - Cliff 'Bernanke' Clavin

Caviar Emptor's picture

Love the Cheers reference. I agree that there are no repercussions to uninhibited money printing, growing, harvesting and chopper-dropping. It  stimulates hardons and kindles the inner yuppie in all of us.

hannah's picture

didnt work out too well for woodie when him and sam invested with the rich guys...

eatapeach's picture

I'll have a Screaming Viking, please

CrashisOptimistic's picture

The only astonishing thing about all of this is that people walk around pretending everything is fine and this is all normal.

EscapeKey's picture

The vast amount of people out there want to swallow the blue pill.

odatruf's picture

Exactly. Even if you gave them a placebo, they'd pretend to have taken a blue one in hopes of faking it 'till they make it.

 

Luckhasit's picture

"If i don't know about it, then it can't hurt me."

JPM Hater001's picture

We got seven month "Sir".  I'm sure you didnt mean to disrespect the Powers That be.

eclectic syncretist's picture

First we print the money that belongs to you, then we loan it to you at interest.  The best part it, we made it all legal.

- B.S. Bernanke

rqb1's picture

Well said, I remember when I first understood that statement.  Great business they got there.

camaro68ss's picture

a 30% increse in printing from there last Announcement in September and the markets didnt even bat an eye. We are so F***ed

odatruf's picture

If they were actual markets, they would have trembled. That they didn't is simply more proof of their corruption.  As if any were needed...

JPM Hater001's picture

This is just stupid.

Get it over with already.

JPM Hater001's picture

If you arent familiar go watch the smoke filled room study.

In short,

Test One:One Female-Sitting in chair filling out a Survey-smoke comes under far door.  Out in less than 30 seconds.

Test Two: 7 or 8 Confederates and 1 Female- Sitting in Chairs all filling out surveys- Cue smoke under far door.  No one said anything and the lady didnt leave for over 20 minutes.  I gotta think we're close to that threshold.

XitSam's picture

I've seen similar studies where the other people assured the test subject that everything was fine and not to worry. Test subject believed them.

EscapeKey's picture

Meh, it was legal long before Bernanke existed.

Besides, he is nothing but a puppet in their little game.

ParkAveFlasher's picture

The USD is simply a license to trade with US corporations and citizens and traffic in American goods.

It is only license.  This is why its meaning is plastic - it is at once commodity, asset, liability, money, currency, etc.   It is all these things in latency, proxy, and shapelessness. 

Gold is not a "money substitute".  Instead, Fiat is a substitute for reality.

JPM Hater001's picture

This time I actually mean it...

Tell me how you really feel.

slaughterer's picture

Quick, someone here tell me, how do we keep the unemployment numbers up?  

derek_vineyard's picture

if every country prints money...isn't it the country that prints the highest % going to be the one getting the worst inflation?

Caviar Emptor's picture

Actually, the country with the fastest printing press will win because it becomes the richest country , Silly.

NaiLib's picture

FED...BOE...ECB...BOJ...PBOC...SNB... they're all printing more and more.

Quintus's picture

Simply raise the Labor Participation Rate. 

TheSilverJournal's picture

So, extend unemployment benefits and reopen unemployment benefits up to those who have already used up their unemployment?

CPL's picture

Yes.

 

Like the last five extensions starting in 2008.

Caviar Emptor's picture

Or hold a mandatory monthly jobs fair at the mall where EBT bonus cards get distributed

rubearish10's picture

Which also implies no spending cuts on UE benfeits since that would reduce the LPR too! What Fiscal Cliff?

HD's picture

Unemployment above 6.5%?  HILARIOUS. They just gave themselves cover to print FOREVER...

TruthInSunshine's picture

More accurate unemployment numbers will thus now be reported, while CPI will thus now be even more tortured.

SoNH80's picture

If they are off by 1% GDP deflator right now, we are in recession.  They are likely off by at least 2%.  We are in deep doo-doo, as George Herbert Walker Bush Walker Preston Bush IV would say.