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Fed Hints At Moar As Economy 'Paused Due To Weather'

Tyler Durden's picture





 

In a slight surprise, the FOMC appears to have seen the recent weakness in macro data as supportive of its ongoing pumpathon even suggesting more is possible:

  • *FED SAYS GLOBAL MARKET STRAINS EASED 
  • *FED SAYS ECONOMY PAUSED DUE TO WEATHER, TRANSITORY ISSUES
  • *FED SAYS ECONOMIC ACTIVITY `PAUSED IN RECENT MONTHS'
  • *GEORGE DISSENTS FROM FOMC DECISION

So let's get this straight: the Fed did not blame the weather in December after Sandy, but blames it in January - weather that can be simply described as a perfectly mild and warmer than average winter?

Pre-FOMC: ES 1502.5, 10Y 2.025%, Crude $97.75, Gold $1678, EUR 1.3570

 

Statement:

For immediate release

Information received since the Federal Open Market Committee met in December suggests that growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors. Employment has continued to expand at a moderate pace but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has shown further improvement. Inflation has been running somewhat below the Committee’s longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic growth will proceed at a moderate pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate. Although strains in global financial markets have eased somewhat, the Committee continues to see downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective.

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.

The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases.

To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored. In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Charles L. Evans; Jerome H. Powell; Sarah Bloom Raskin; Eric S. Rosengren; Jeremy C. Stein; Daniel K. Tarullo; and Janet L. Yellen. Voting against the action was Esther L. George, who was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long-term inflation expectations.

* * *

Full Redline comparison to December FOMC:

 

 


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Wed, 01/30/2013 - 15:21 | Link to Comment Water Is Wet
Water Is Wet's picture

Still not up at federalreserve.gov.

Wed, 01/30/2013 - 15:22 | Link to Comment AllThatGlitters
AllThatGlitters's picture

Well, gold is telling the story.  Look at the whipsaw: http://www.pmbull.com/gold-price/

Wed, 01/30/2013 - 15:27 | Link to Comment walküre
walküre's picture

and employ its other policy tools as appropriate

What other "tools" do they have left? They went to infinity. We have ZIRP. Other than opening the floodgates and sending out cheques to every citizen and priming the pump for hyperinflation, they've got NO tools to lite the fire.

Wed, 01/30/2013 - 15:29 | Link to Comment TerminalDebt
TerminalDebt's picture

I got one word for you - Helicopter

Wed, 01/30/2013 - 15:40 | Link to Comment Manthong
Manthong's picture

"Difficulty on the way to victory is opportunity for God to work".

-Henry Wadsworth Longfellow

"or to do God's work"

-me

Wed, 01/30/2013 - 16:31 | Link to Comment Almost Solvent
Almost Solvent's picture

Since the FED says the economy paused, I'm going to pause my tax payments until the economy grows again.

Wed, 01/30/2013 - 17:30 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

Terrorist

Wed, 01/30/2013 - 15:39 | Link to Comment kaiserhoff
kaiserhoff's picture

Well, that tears it.  I'm sure the Dims will introduce a bill soon prohibiting "weather".

While they are at it, maybe Rufus could try his had at holding back the tides.

Wed, 01/30/2013 - 15:29 | Link to Comment HoofHearted
HoofHearted's picture

Players gotta play, and central bankers gotta print. Dumb asses that they are.

Wed, 01/30/2013 - 15:31 | Link to Comment walküre
walküre's picture

Understood. So instead of printing 85 billion to keep the shitshow going, he might print 185 billion?

I'm not arguing the point but at what time do even the stupidest people realize how baloney this whole process is?

Wed, 01/30/2013 - 15:41 | Link to Comment AnonymousCitizen
AnonymousCitizen's picture

So how is this a surprise?

"It's not working yet, we have to keep going."

or

"It's starting to work, we have to keep going."

Wed, 01/30/2013 - 15:43 | Link to Comment Divided States ...
Divided States of America's picture

Bernanke and all the Goldmanite Central Bankers can keep blaming the weather for the economic largesse....but didnt they know that all these easy money policy is creating a economic bubble stimulating more production of plastic junk we dont need, more building of residential and office buildings that no one can really afford and are left vacant, and airports that doesnt have any airplanes??? All these constructions occuring simultaneously all over the globe is polluting the environment to an extent that we are seeing the fuckin weather trend go up and down like the stock market did in 2007-2008. Bernanke may be a PhD but he got no clue in social and environmental consequences of his guinea pig financial experiment.

Wed, 01/30/2013 - 15:31 | Link to Comment Solid Gold Bubble
Solid Gold Bubble's picture

Fed Zeppelin - Whole Lotta Dove

Wed, 01/30/2013 - 15:44 | Link to Comment The Gooch
The Gooch's picture

+100

 

Wed, 01/30/2013 - 15:52 | Link to Comment machineh
machineh's picture

'GEORGE DISSENTS FROM FOMC DECISION'

So did Ringo, Paul and John.

Wed, 01/30/2013 - 15:39 | Link to Comment you enjoy myself
you enjoy myself's picture

What other "tools" do they have left?

i'm waiting for the day when they announce they're buying derivatives until UE is below 5%.  explaining how that will supposedly help the economy, and is in line with their dual mandate, is guaranteed to be an Orwellian masterpiece.

Wed, 01/30/2013 - 15:42 | Link to Comment walküre
walküre's picture

The day that happens is the day you want to be removed from populated areas and be completely off the grid. To look for that place then is too late. To start buying pms then is too late. Trying to withdraw cash to convert is already a problem. If they attempt to balance the derivative bubble with printing, it is game over.

Wed, 01/30/2013 - 15:46 | Link to Comment SilverIsKing
SilverIsKing's picture

What do you mean by "if?"

Wed, 01/30/2013 - 16:08 | Link to Comment walküre
walküre's picture

Right, for a moment there I looked through an uncracked part in my rose colored glasses. It cracked as well.

Wed, 01/30/2013 - 16:48 | Link to Comment SilverIsKing
SilverIsKing's picture

.gov hasn't confiscated your rose colored glasses yet?  They took mine from me about two years ago.

Wed, 01/30/2013 - 15:50 | Link to Comment HoofHearted
HoofHearted's picture

 

What other "tools" do they have left?

Uh, Ben Bernanke. Hell, the whole FOMC. Oh, I thought you were asking what tools the banksters had left...nevermind.

Wed, 01/30/2013 - 16:45 | Link to Comment SokPOTUS
SokPOTUS's picture

That's not the "tool" they're referring to.  If you haven't felt it yet, you will soon.

AMZN shorts felt it last night.

Wed, 01/30/2013 - 15:23 | Link to Comment Water Is Wet
Water Is Wet's picture

It's clear.  The bankers can keep getting free money as long as employment doesn't improve.

Wed, 01/30/2013 - 15:50 | Link to Comment Chupacabra-322
Chupacabra-322's picture

It's drizzling outside.  Dam!! We're bankrupt.

Wed, 01/30/2013 - 15:27 | Link to Comment SeverinSlade
SeverinSlade's picture

Still don't see how this suggests more easing and possibly an expansion of it.

Economy slowing is "transitory" and attributed to weather and other variables.

Global market strains "eased."  Meaning less support is needed.

Am I missing something?

SIDE NOTE

federalreserve.GOV

That's funny right there.

Wed, 01/30/2013 - 15:20 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Not the flu?

Wed, 01/30/2013 - 15:22 | Link to Comment RSBriggs
RSBriggs's picture

No, that's the excuse for next time.

Wed, 01/30/2013 - 15:30 | Link to Comment SeverinSlade
SeverinSlade's picture

"The economy got a mild flu in Q1.  Instead of expanding our asset purchases, the FOMC has prescribed soup, crackers, and gatorade."

Wed, 01/30/2013 - 15:21 | Link to Comment FL_Conservative
FL_Conservative's picture

Who wouldn't want 50% MOAR??

Wed, 01/30/2013 - 15:25 | Link to Comment Zap Powerz
Zap Powerz's picture

If they say a negative growth rate is due to weather then there is no doubt left the USA has gone full retard.

Wed, 01/30/2013 - 15:48 | Link to Comment SilverIsKing
SilverIsKing's picture

So this is what's needed to remove any doubt that the USA has gone full retard?

Wed, 01/30/2013 - 15:20 | Link to Comment slaughterer
slaughterer's picture

Pretty comatose reaction.

Wed, 01/30/2013 - 15:20 | Link to Comment Stonedog
Stonedog's picture

Well all of that used up my bullshit quota for the day.

Wed, 01/30/2013 - 15:21 | Link to Comment Zap Powerz
Zap Powerz's picture

Bunch of retarded motherfuckers.  Their plan doesnt work and so what will they do? MOAR OF THA SAM3!!!!elev3enty!11

Wed, 01/30/2013 - 15:23 | Link to Comment EscapeKey
EscapeKey's picture

Reminds me of something Einstein said.

Well, that and Groundhog Day.

Wed, 01/30/2013 - 15:33 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Well, science isn't their field.

Wed, 01/30/2013 - 15:44 | Link to Comment The Gooch
The Gooch's picture

"I Got You Babe"

Wed, 01/30/2013 - 15:21 | Link to Comment Dr. Engali
Dr. Engali's picture

Transitory bitchez!

Wed, 01/30/2013 - 15:21 | Link to Comment walküre
walküre's picture

MOAR what? I guess to INFINITY and BEYOND.

We are going BEYOND

Wed, 01/30/2013 - 15:22 | Link to Comment rubearish10
rubearish10's picture

So the economy farted?

Wed, 01/30/2013 - 15:22 | Link to Comment EscapeKey
EscapeKey's picture

We DEFINITELY need more printing. The more we print, the more the Dollar is worth.

/Give me a fucking break, first all the anchors tell us how strong the economy is despite the GDP numbers, now they say they need to print more. It's all fucking lies.

Wed, 01/30/2013 - 15:26 | Link to Comment El Hosel
El Hosel's picture

 "The Markets" don't know what to make of all this ......  WTF,  pass the fairy dust and god bless the "recovery".

Wed, 01/30/2013 - 15:28 | Link to Comment El Hosel
El Hosel's picture

.... "Markets suffer biggest setback in months", Dow down 26.

Wed, 01/30/2013 - 15:22 | Link to Comment Zap Powerz
Zap Powerz's picture

Hey, ASSHOLES!  WE ALWAYS FUCKING HAVE WEATHER!

Seriously, who believes this bullshit? Weather? Really?  Its always something other than the central planners stupid fucking plans right?

Wed, 01/30/2013 - 15:57 | Link to Comment Stuffs And Stuff
Stuffs And Stuff's picture

The Sun! There's too much of it!

Wed, 01/30/2013 - 15:22 | Link to Comment RunningMan
RunningMan's picture

Paused? No way. Sectors of the US economy have been in lockdown since August. Anemic at best. I think Q2 will print at -1%GDP unless there is a miracle.

Wed, 01/30/2013 - 15:29 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

You may mean Q1, since this report was for Q4.

But you also may have a point in that the Sequester would hit in Q2.

Wed, 01/30/2013 - 16:26 | Link to Comment RunningMan
RunningMan's picture

Good catch - I meant Q1. My crystal ball was smashed against the wall some time ago, so no idea what will happen Q2. Or after.

Wed, 01/30/2013 - 15:30 | Link to Comment walküre
walküre's picture

"since August" - affirmative on the time frame

Business was ok until then. Since August even muddling through won't pay the bills.

Wed, 01/30/2013 - 15:57 | Link to Comment Poetic injustice
Poetic injustice's picture

Is war a miracle or blessing?
I see no other way of getting positive GDP there, as government will buy more assault weapons and other "hardware" instead of reformation.

Wed, 01/30/2013 - 15:24 | Link to Comment IamtheREALmario
IamtheREALmario's picture

I wonder if these people believe they are contributing anything of value to the world... contrary to the evidence.

Wed, 01/30/2013 - 15:24 | Link to Comment Dr. Engali
Dr. Engali's picture

"Inflation has been running
somewhat below the Committee’s longer-run objective"

 

 

Translation...There is plenty of room for moar printing.

Wed, 01/30/2013 - 15:30 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"......Committee's longer-run objective"

Always nice to know the thieves have long range plans.

<Gold seems to think they will crank up the printing press another notch or six.>

Wed, 01/30/2013 - 15:33 | Link to Comment Dr. Engali
Dr. Engali's picture

Ben's printing press goes up to 11

 

 

http://www.youtube.com/watch?v=EbVKWCpNFhY

Wed, 01/30/2013 - 15:46 | Link to Comment The Gooch
The Gooch's picture

It's one MOAR.

Wed, 01/30/2013 - 15:41 | Link to Comment Shameful
Shameful's picture

Would love for them to put out their real "long-run objective", but maybe the masses wouldn't like Dollar to Dong parity.

Wed, 01/30/2013 - 15:24 | Link to Comment new game
new game's picture

moar is better

paused my ass

the weather-ya sure

excuses, excuses.

some ask them to check their cog dis and stand in front of mirror until they can figure out what the hell they are up.

40 + 45+ moar = absolute craziness IMFO

Wed, 01/30/2013 - 15:28 | Link to Comment thismarketisrigged
thismarketisrigged's picture

fuck these assholes.

 

i cant wait for fridays unemployment number.

 

either way these criminals will find a way to pump it up

unemployment drops= fraudsters will take that as a sign that things r getting better, reason to pump markets to all time high.

 

unemployment rises= fraudsters will pump markets to new highs because that would mean more stimulus.

 

fucking joke, fuck u bernanke and obama, and all central bankers worldwide, and wall st

Wed, 01/30/2013 - 15:25 | Link to Comment q99x2
q99x2's picture

Did they say anything about when we were susposed to stop having weather?

Wed, 01/30/2013 - 15:34 | Link to Comment TerminalDebt
TerminalDebt's picture

as soon as it starts raining 100 dollar bills

Wed, 01/30/2013 - 15:26 | Link to Comment MFLTucson
MFLTucson's picture

Obama is 150% responsible for this, his tax and spend liberal agenda is having the same affect as Hollande in France.

Wed, 01/30/2013 - 15:32 | Link to Comment pods
pods's picture

Ummm, no.  Math is responsible.

But whatever gets you to sleep at night.

pods

Wed, 01/30/2013 - 15:38 | Link to Comment Dr. Engali
Dr. Engali's picture

We will just pretend like the 10 trillion of debt accumulated before he took office never existed.

Wed, 01/30/2013 - 15:40 | Link to Comment Cast Iron Skillet
Cast Iron Skillet's picture

yeah! If the repugnicans were in there, they'd have the bugdet balanced and the debt paid off by now!

Wed, 01/30/2013 - 16:42 | Link to Comment SokPOTUS
SokPOTUS's picture

You say Thelma, I say Louise...

Wed, 01/30/2013 - 15:26 | Link to Comment Joe moneybags
Joe moneybags's picture

Esther George for President 2016

Wed, 01/30/2013 - 15:26 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

"yeah, well sometimes nothing is a real cool hand...."

Cool Hand Luke

Wed, 01/30/2013 - 15:27 | Link to Comment JustPrintMoreDuh
JustPrintMoreDuh's picture

Moar is not only possible ... its the only option left until the final curtain call.

Wed, 01/30/2013 - 15:27 | Link to Comment azzhatter
azzhatter's picture

I hate when it's cold in winter and hot in summer. Just screws everything up

Wed, 01/30/2013 - 15:27 | Link to Comment Cursive
Cursive's picture

The financial repression will continue until morale improves.

 

P.S. Congrats to Ms. George.  Apparently she's the only governer with a conscience and a set of balls.

Thu, 01/31/2013 - 07:37 | Link to Comment JuicedGamma
JuicedGamma's picture

I fest exactly the same way after reading this.

It's like the old joke, "the beatings will continue til moral improves" especially relevant on long ocean voyages.

Wed, 01/30/2013 - 15:26 | Link to Comment Dr. Engali
Dr. Engali's picture

Since 6.5% is the target rate for unemployment it will never again drop bellow 8%

Wed, 01/30/2013 - 17:05 | Link to Comment FoeHammer
FoeHammer's picture

Hey Doc,

Did you see whiteshadow's comments about building up the welfare state?

I think you're right in the sense that the Fed is here to buy treasuries because the private market (IE China) has disappeared. It has nothing to do with true employment and so they have to continually make up reasons to justify the intervention. What are your thoughts?

Wed, 01/30/2013 - 15:28 | Link to Comment Gimp
Gimp's picture

Feel like I am walking a used car lot.....moar excuses..

Here is the problem in a nutshell - STOP PRINTING F**KING MONEY - Get it.

Wed, 01/30/2013 - 15:31 | Link to Comment monopoly
monopoly's picture

Weather. Of course. I thought the slowing was due to fundamentals and the fact that we are broke and insolvent. How stupid of me.

Wed, 01/30/2013 - 16:40 | Link to Comment SokPOTUS
SokPOTUS's picture

...and as we all know, Karl Rove controls the weather.  So we really need to get the Architect to opine here on this.  I'm sure his analysis will be just as prescient as always...

Wed, 01/30/2013 - 15:29 | Link to Comment AZLagun
AZLagun's picture

The weather, ha!  What a joke!  Reminds me of a Millie Vanilli top hit from back in the day.  "Blame it on the rain"......We all know how that ended.

http://www.youtube.com/watch?v=NwrL9MV6jSk

Wed, 01/30/2013 - 15:28 | Link to Comment Spastica Rex
Spastica Rex's picture

The pause in the economy was like a rewind before an epic drop in a dub step song.

God, I hate dubstep.

Wed, 01/30/2013 - 17:07 | Link to Comment FoeHammer
FoeHammer's picture

Drop the Labor Force Bass!

Wed, 01/30/2013 - 15:29 | Link to Comment krispkritter
krispkritter's picture

The Fed says the weather's a drag

But they still have more QE in the bag

Sandy did blow

$80 billion you know

But it's really because of Ben the douchebag.

Wed, 01/30/2013 - 15:31 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

SANDY reconstruction IS ALREADY UNDERWAY AND IS IN THAT -0.1% report.  That's what homeowner's insurance is.

The Federal pork coming just offsets the millionaire's tax (almost dollar for dollar) as regards GDP drag.

Wed, 01/30/2013 - 15:29 | Link to Comment firstdivision
firstdivision's picture

The market seems confused as movement hasn't been as erratic as usual.  Is there a delay in getting it to the algos?

Wed, 01/30/2013 - 15:29 | Link to Comment magnumpk
magnumpk's picture

Inflation should remain at or below 2% for those of us who don't drive a car or eat food.

Wed, 01/30/2013 - 15:36 | Link to Comment TerminalDebt
TerminalDebt's picture

Inflation should remain at or below 2% for those of us who drive a Euro shitbox car and eat dog food.

 

Fixed

Wed, 01/30/2013 - 15:31 | Link to Comment pods
pods's picture

Was that release trying to move their inflation target to 2.5%?

The FED has the perfect setup to QE to the moon.
Their policy is the cause of the problem they are trying to fix.

Reminds me of the AIDS debacle where AZT kept killing AIDS patients they were "treating."  

On a side note, I have found an outlet for all of this that is really productive.

Gold prospecting.  Being outdoors relieves stress, and any proceeds of my forays will also relieve stress.

Win win.

pods 

Wed, 01/30/2013 - 15:41 | Link to Comment Dr. Engali
Dr. Engali's picture

I thought about prospecting but I decided to drink instead.

Wed, 01/30/2013 - 15:56 | Link to Comment Orly
Orly's picture

Seriously, I have thought about that myself.  Just for kicks...

How do you know where to look?

Wed, 01/30/2013 - 16:15 | Link to Comment Goyim Sheep
Goyim Sheep's picture

Your chances of finding any increase the farther you get from the vaults in NYC. Just trying to help.

Wed, 01/30/2013 - 16:21 | Link to Comment pods
pods's picture

Just starting out this spring in NC.  Plenty of areas around within an hour or two and I am brushing up on my geology too!

Tons of information about historical areas as well as formations that have yielded it in the past.  

Couple hundred bucks can get you panning stuff and a small sluice.  

There are some pay to pan places, but I am scouting some private land to get permission as well as public access places.

Hell, the worst that happens is I find no gold being in the woods, which I like to do anyways.

pods

Wed, 01/30/2013 - 17:11 | Link to Comment FoeHammer
FoeHammer's picture

"Hell, the worst that happens is I find no gold being in the woods, which I like to do anyways."

 

Sounds like a win-win to me as well!

Wed, 01/30/2013 - 15:32 | Link to Comment Forty Six and 2
Forty Six and 2's picture

Moar = Less

Less = Moar

Wed, 01/30/2013 - 15:33 | Link to Comment Bam_Man
Bam_Man's picture

It's called stagflation, bitchezzz! And it has nothing to do with the weather.

Wed, 01/30/2013 - 15:32 | Link to Comment VonManstein
VonManstein's picture

red bonds red stocks red USD green Pms all on FOMC day. More of this in the future

Wed, 01/30/2013 - 15:33 | Link to Comment LongSoupLine
LongSoupLine's picture

No matter what they fucking say, Bernanke will continue to pump hot fucking fiat into the banks.

 

You expect them to publically say what they're going to really do?

 

Fuck you Bernanke.  fucking ass.

Wed, 01/30/2013 - 15:38 | Link to Comment walküre
walküre's picture

Bingo. All CBs are buying their nations paper because the amount of paper is too big to be funded through the economy (a.k.a investors).

Paper, paper everywhere and no yield. Just to keep things going without offending or hurting anyone. In the meantime and in the darkness, those same CBs are buying metals. Suppressing the price so they can load up cheap with worthless paper.

It will be the WTF moment of mankind when they declare one day that the paper is worthless and that they have a new paper coming.

Wed, 01/30/2013 - 15:32 | Link to Comment Its Only Rock N Roll
Its Only Rock N Roll's picture

Gotta love it when the Fed uses the word "TRANSITORY"...ie "we don't know wtf is going on but we are going to do MOAR of the same"

Nothing to see here folks....move along

Wed, 01/30/2013 - 15:35 | Link to Comment Yen Cross
Yen Cross's picture

 That Fed. statement should make that fucking worthless schlep "Chair Satan", really popular with central bankers around the world.

[sarc]

Wed, 01/30/2013 - 15:37 | Link to Comment Jack Burton
Jack Burton's picture

People have a finite amount of money to spend. WTF does it matter if they wait out a snowstorm to go spend it.

You need income growth to spur spending growth to spur economic growth. Borrowing is reaching a limit due to lack of median income growth.

"The weather did it"? For fuck's sake, when does this stupid shit end?

Wed, 01/30/2013 - 16:15 | Link to Comment nantucket
nantucket's picture

they never seem to do the same for good weather or periods after bad weather.  just once I want to hear "July and August were fantastic months, hardly rained anyhwere, so 3Q GDP was not really as strong as it looked".   ya never hear that.

Wed, 01/30/2013 - 15:39 | Link to Comment 100pcDredge
100pcDredge's picture

Moar? http://flamesnation.ca/uploads/Image/moar.jpg

Owait: Maori!

Of course... Let me guess: they want their gold back - don't they?

Wed, 01/30/2013 - 15:39 | Link to Comment youngman
youngman's picture

" and employ its other policy tools as appropriate"...this is what is called a catch all phrase...meaning they can pretty much do anything they want....must be nice to be a FED...

Wed, 01/30/2013 - 15:38 | Link to Comment Rob Jones
Rob Jones's picture

The Fed is putting the pedal to the metal. The precious metal that is.

Wed, 01/30/2013 - 15:40 | Link to Comment bdc63
bdc63's picture

Transitory issues ... at least they are, until they aren't ...

Wed, 01/30/2013 - 15:40 | Link to Comment khakuda
khakuda's picture

I'm imagining Esther George sitting at a table surrounded by mindless money printing zombies saying, "Seriously, are you guys kidding?  You ALL think this is a fantastic idea?  Hello?  Ben?  Anyone???  Evans is biting my leg, can someone make him stop...Security!!"

Wed, 01/30/2013 - 15:51 | Link to Comment Everybodys All ...
Everybodys All American's picture

There is not one thing the Fed can do to change the course of the economy at this point and they know it. Can you imagine the reality of printing 85 bil a month and it's still creating a negative gdp? Bernanke goes down in history as the biggest dope to ever run the Fed. Bar none.

Wed, 01/30/2013 - 15:43 | Link to Comment Never One Roach
Never One Roach's picture

"Paused to Wither" don't ya mean?

 

Wait until these higher postal rates squash sales especially the international buyer who now gets sorely damaged when they buy sumthin as lite as 8 ounces (that's $12.75 to the UK, for sample).

Then you have the friendly "Credit Card Swipe Fees" up to 4%....

Internet Sale staxes...

Food rising at 8-10%...

'High Yield Savings' account yield at 0.01%...

A fat 1.6% COLA increase for seniors on SS....

...and so on.

Not gonna be a perty 2013.

 

Wed, 01/30/2013 - 22:02 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Bitcoin mining and vending as a middle man to exchange currency for online transactions looks to be the short term work around.

Wed, 01/30/2013 - 15:46 | Link to Comment joego1
joego1's picture

Another reason for a currency war.

Wed, 01/30/2013 - 15:48 | Link to Comment Nothing To See Here
Nothing To See Here's picture

Government elementary textbook :

When the economy goes bad, blame the 'market' (and now the weather).

When the economy goes good, it's thanks to us.

Wed, 01/30/2013 - 15:48 | Link to Comment SmallerGovNow2
Wed, 01/30/2013 - 18:34 | Link to Comment ZeroAvatar
ZeroAvatar's picture

YA-Hoo:  Same thing............

 

http://finance.yahoo.com/blogs/breakout/3-reasons-negative-gdp-not-bad-t...

 

P.S.  Don't actually EXPECT anyone to click on link, for instructional purposes only.

Wed, 01/30/2013 - 15:51 | Link to Comment pragmatic hobo
pragmatic hobo's picture

so, according to bernanke cold weather is not allowed any more?

Wed, 01/30/2013 - 16:36 | Link to Comment SokPOTUS
SokPOTUS's picture

Gentlemen:

Start your SUV's!

 

Wed, 01/30/2013 - 15:54 | Link to Comment Gimp
Gimp's picture

Pucker-up everyone...the weather made me do  it, or not.

Wed, 01/30/2013 - 15:55 | Link to Comment Lord Drek
Lord Drek's picture

lol

Wed, 01/30/2013 - 15:58 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Hilarious....Market surges in Jan after the storm but slowdown is due to weather....can make this shiite up !

Had to know this was coming...
White House: GOP responsible for contracting economy
By Justin Sink - 01/30/13 01:11 PM ET

White House press secretary Jay Carney laid the blame for a surprise economic contraction squarely at the feet of congressional Republicans Wednesday, saying economic threats during the "fiscal cliff" negotiations had prevented important defense spending.

"Our economy is facing a major headwinds, and that's Republicans in Congress," Carney said.

Wed, 01/30/2013 - 16:35 | Link to Comment SokPOTUS
SokPOTUS's picture

Democrats arguing that defense spending is too low.

Let me off this crazy thing...I think I'm gonna hurl!

 

Wed, 01/30/2013 - 16:18 | Link to Comment dunce
dunce's picture

Item number 1476 on the list of things blamed on climate change, not to worry though, higher taxes will fix everything.

Wed, 01/30/2013 - 16:33 | Link to Comment SokPOTUS
SokPOTUS's picture

What a bunch of MOAR-ons.

Wed, 01/30/2013 - 18:00 | Link to Comment Meat Hammer
Meat Hammer's picture

WTF!  I thought natural disasters fit right into the Keynesian wet dream of breaking shit to help the economy!  Somebody lied to me

Wed, 01/30/2013 - 19:04 | Link to Comment Son of Loki
Son of Loki's picture

Ben calls it the "weather"...in Beijing it's called "pollution."

Wed, 01/30/2013 - 19:12 | Link to Comment GNWT
GNWT's picture

party like it's 1999...

 

with the Silver Liberation Army...

at...

 

www.ZIRPinUSA.com

Wed, 01/30/2013 - 19:46 | Link to Comment icanhasbailout
icanhasbailout's picture

economic activity paused due to people being drunk from Thanksgiving straight through to the second week of January

Thu, 01/31/2013 - 12:11 | Link to Comment R_J
R_J's picture

oops, im not even done with the first half, BUT:

S E R I O US L Y , this report is one of the funniest i have read for quite sometime...
-I knew that the closer we got to another F0MCabal meeting, more obvious and funny their lies would be.

HanX! to ZeroHedge for posting "their" hillarious "Shite"

R_J

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