The FOMC's 'Two-Handed' Economy

Tyler Durden's picture

President Truman famously called for a one-handed economist, so he would not have to hear, "on the other hand..." and so, BofAML notes, it may be the same at the March FOMC meeting with regard to the labor market - the apparent key to both QE and forward guidance. On the one hand, the recent US employment data have been stronger. On the other, the sequester is likely to result in significant job loss. On the one hand, the FOMC’s unemployment-rate projections are likely to be revised down. On the other, the labor market remains a long way from "substantially improved." The back-and-forth is likely to be broken by Chairman Bernanke’s press conference, where BofAML expect him to decisively come down on the side of an extended QE program. This should reduce concerns around the exit process and likely ratify market expectations of the first hike (priced for mid 2015), but one glance at the chart below tells you all you need to know about the diverging realities of our two-handed economy.



Chart: BofAML

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Croesus's picture

Yep, more evidence of the colossal screw job ,brought to us by central bank ponzi schemes.

"where BofAML expect him to decisively come down on the side of an extended QE program"

Bernanke won't stop QE, until QE stops him.

dumpster's picture

the other hand is in the pants of the politicians friends and drinking partners

Stoploss's picture

But,    But, 

Krugman said the unemployment rate is improving!!???


Oh right.,

toys for tits's picture


He's right, it's getting bigger.

Sutton's picture

Ben's going to let the 4 Tril run off and in about 8 years be handed a 4 trillion dollar check(of worthless money) from the Treasury.


King_Julian's picture

No. It's just going to come back as an amendment to another bill. The good news is Magpul Inc. is leaving Colorado for friendlier parts. Idaho just passed nullification law. Other states are following.

Stoploss's picture

Magpul belongs in Texas.

So, hurry up every chance yall get.

Poundsand's picture

Won't really matter.  Federal laws trump state laws when regarding the same issue.  Besides, the Dem's have learned that it is clearly easier to go at this on a state by state basis as opposed to the whole enchilada. 

DNC to Colorado governor Hickenlooper - "Look John, remember how well you did on that real estate in LoDo once we put all that urban renewal money in there? Well, now it's time for some payback. Fall on your sword and I am sure there is a company out there looking for a chief executive that is looking for a well connected pol to run it's green company."

Hickenlooper - "Solar or wind?"

DNC - "Like we care... Just remember when we come knocking for some campaign cash"

Translational Lift's picture

Meanwhile... Assault Weapons Ban is DOA!!!!!!!!!!!

Except in leftocratic wacko Connecticut......

OptionNinjaNYC's picture

I think the FED needs to do some serious soul searching and ask themselves, What happens when you disturb a Bee Hive?

Goldilocks's picture

"The biggest big business in America is not steel, automobiles, or television. It is the manufacture, refinement and distribution of anxiety." — Eric Sevareid

Cycle's picture

I expect no less from our Bankster Occupation Government (BOG) - save the banksters and bang the savers.

squid virtuous's picture

well at least we got rid of ZOG, but where did they go? /sarc 

khakuda's picture

Both hands are printing money. It was a trick question.

There is NO exit. Who are they kidding.

squid virtuous's picture

As Krudlow used to say, goldilocks!

more QE =  more destruction of middle class and anyone foolish enough to "save" outside of the wall st. equity casino

swissaustrian's picture

Obamacare is going to fix the employment to population problem by transforming 1 full time job into 1.3 part time jobs.

It doesn't matter that individual incomes are going to drop by 25% due to that.

ekm's picture

A lot of Part time jobs are to replace the non human energy lost due to shortage of oil.

Those are not even jobs. Those are slavery.

A businessman will either pay for gasoline and electricity or pay for human labor when the non human energy is in shortage.

Shizzmoney's picture

But look at all of the jobs we create this way! 

We can get this number down to 3% by 2035 if everyone in America gets 3 jobs!

Hedgetard55's picture

Fuck Bernanke, that cock sucking, mother fucking criminal. Rot in Hell, you fucking prick!!!

Sudden Debt's picture

you sound like my wife when I was looking for her G-Spot...


needless to say, after a 6 years marriage... I gave up... and don't really give a fuck about that anymore...

Par Contre's picture


Take a good look at the unadjusted year/year numbers, the job market is already rolling over.

Nobody For President's picture

On the other hand, I have five fingers.

Seer's picture

You/re going to have to face-up to that joke!

Confundido's picture

Fucking BofA! Their rates team recently published some research on the Fed's exit strategy...It was the biggest bullshit ever! Fed's policy is dependent on unemployment??? Come on guys! I was born at night but not last night! How the fuck could you insult your readers' intelligence speaking of the Fed's policy without one single fucking sentence related to the fiscal deficit???? You want us to believe that the Fed is printing money because the unemployment rate they make up is above 6.5%??? Really? Do you think we are that stupid?? Go fuck yourselves!

Aaron Burr's picture

The Federal Reserve has done what it's primary mandate states: Protect it's owners from any major losses. Job well done. As the entitlement class has teamed up with the ruling class elitist bankster ass-hats with the apparent plan to soak whomever is left in the middle for everything they are worth there is not much optimism left in the real economy. It's the killing of the gold laying goose shit on steroids.

dunce's picture

Sounds like Truman had some good economists, every action has a reaction and they counseled him  on the options. Obama has one handed economists and they are all left handed. They seem blind to the failure of their policies that are "on the other hand".