• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

FOMC Minutes: Half The Fed Participants Said It Would Be Appropriate To End QE "Late This Year"

Tyler Durden's picture




 

Discord appears to be the best word to describe the FOMC minutes but the baffle 'em with bullshit seems like the order of the day:

  • FED SAYS SEVERAL ON FOMC SAW QE TAPERING LIKELY WARRANTED SOON
  • FED SAYS MANY ON FOMC SAID LABOR GAINS NEEDED BEFORE QE TAPER
  • FED SAYS FOMC SAW FISCAL POLICY RESTRAINING ECONOMIC GROWTH

As a reminder, uberdove Charles Evans wanted 200K or more in job gains in the past two quarters. Here's the thing - the average monthly job gain in the past 6 months is... 201,000. As for the punchline:

  • HALF OF THE FED INDICATED IT LIKELY WOULD BE APPROPRIATE TO END ASSET PURCHASES LATE THIS YEAR - NOT SLOW END
  • A FEW PARTICIPANTS INDICATED THAT THE COMMITTEE SHOULD SLOW OR STOP ITS PURCHASES AT THE JUNE MEETING - "OR STOP"

Communication matters apparently. But the key is that taper appears (forget about an all out stop) to be coming soon - and as usual - it's all data-dependent. Aside from that, it is the usual baffle with BS schtick. Most importantly, with half the Fed saying not just taper, but flat out end to QE by 2014, we now have a full blown mutiny in the Fed.

Pre: S&P 500 futures 1644.50 (VWAP), EURUSD 1.2850, 10Y 2.66%, Gold $1250, WTI $106.45

The highlight paragraph from the minutes:

Participants also described their views regarding the appropriate path of the Federal Reserve’s balance sheet. Given their respective economic outlooks, all participants but one judged that it would be appropriate to continue purchasing both agency MBS and longer-term Treasury securities. About half of these participants indicated that it likely would be appropriate to end asset purchases late this year. Many other participants anticipated that it likely would be appropriate to continue purchases into 2014. Several participants emphasized that the asset purchase program was effective in supporting the economic expansion, that the benefits continued to exceed the costs, or that continuing purchases would be necessary to achieve a substantial improvement in the outlook for the labor market. A few participants, however, indicated that the Committee could best foster its dual objectives and limit the potential costs of the program by slowing, or stopping, its purchases at the June meeting.

Not just slow. STOP.

There will never be any MBS sales: 

Most, however, now anticipated that the Committee would not sell agency mortgagebacked securities (MBS) as part of the normalization process

As for the (all cash) housing (non) recovery:

Participants generally were optimistic that the recovery in housing activity would be sustained, although a couple of participants were concerned that the run-up in mortgage rates in recent weeks might begin to crimp demand... Several participants worried that higher mortgage rates and bond yields could slow the recovery in the housing market and restrain business expansion.

The full minutes:

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Wed, 07/10/2013 - 14:05 | 3738252 stocktivity
stocktivity's picture

Market just ramped higher...the bullshit hit the fan. Rally on.

Wed, 07/10/2013 - 14:06 | 3738260 Divided States ...
Divided States of America's picture

much ado about bullshit.

What a load of crock these fuckin minutes are.

Wed, 07/10/2013 - 14:09 | 3738283 ACP
ACP's picture

There goes stop run #1.

Wouldn't be surprised to see another before the end of the week.

Wed, 07/10/2013 - 14:10 | 3738291 Thorlyx
Thorlyx's picture

Gold, bitchez

Wed, 07/10/2013 - 14:15 | 3738318 AllThatGlitters
AllThatGlitters's picture

Straight up so far:

http://www.pmbull.com/gold-price/

 

Wed, 07/10/2013 - 14:18 | 3738333 flacon
flacon's picture

Is that 2014 or 12014?

Wed, 07/10/2013 - 14:24 | 3738365 NoDebt
NoDebt's picture

I was thinking the same thing.  "At the June meeting."  Yeah, what year?

Wed, 07/10/2013 - 14:33 | 3738410 Chupacabra-322
Chupacabra-322's picture

It's a Criminal system, built by Crinimals for Criminals. The business of America used to be business. Now the businesses of Amerika are war, theft, mass murder, and police state crackdown on anyone who objects.

Wed, 07/10/2013 - 14:50 | 3738467 RockyRacoon
RockyRacoon's picture

Thou doth protest too much.   There is business in America.  It's named after Charles Ponzi.

Now buck up a bit and enjoy Mandy's cleavage.

Wed, 07/10/2013 - 15:05 | 3738524 Herd Redirectio...
Herd Redirection Committee's picture

Everyone just wants to go on record as saying "I was against QE".  Its  an attempt at preserving credibility, no more, no less.

When my dog comes up to me and begs, I can tell him "Do you want to go for a walk?"  and he gets REALLY REALLY EXCITED.  For a little while, any way.  If I don't take him for the walk he gets mad as hell.   (swap going for a walk with QE, for the financial version, swap my dog with the markets)

Wed, 07/10/2013 - 16:09 | 3738803 BLOTTO
BLOTTO's picture

Soooo, whats on tv on Wednesday nights?

Wed, 07/10/2013 - 14:33 | 3738411 malikai
malikai's picture

REJOICE SLAVES!

tHE rECOVERy iS uPON uS.

Wed, 07/10/2013 - 14:40 | 3738433 disabledvet
disabledvet's picture

now that they're in the entertainment business as well as doing the regular "monetary stuff" i have a few ideas: http://www.youtube.com/watch?v=zZ3fjQa5Hls clearly we're in need of a ratings improvement. try this out FOMC!

Wed, 07/10/2013 - 14:33 | 3738408 FuzzyDunlop21
FuzzyDunlop21's picture

So nothing new. 

Last time we heard this PM dropped 4% but today they get a boner. Im speechless. Not that Im complaining but lets get some fucking consistency. 

Wed, 07/10/2013 - 14:12 | 3738297 Divided States ...
Divided States of America's picture

Bernanke better have his A game on later in the speech like he did last time. A for Assclown

Wed, 07/10/2013 - 14:17 | 3738327 Bay of Pigs
Bay of Pigs's picture

"Err.....ummm.........ahhh.......annnnnd.....ahhhh....."

Uncle Ben

Wed, 07/10/2013 - 14:29 | 3738389 Schmuck Raker
Schmuck Raker's picture

"puzzled"

lol/cry

Wed, 07/10/2013 - 14:52 | 3738474 RockyRacoon
RockyRacoon's picture

Oh, gawd.  Imagine the soporific Larry Summers up there.  Talk about your mealy-mouth.

Wed, 07/10/2013 - 15:10 | 3738554 SAT 800
SAT 800's picture

Yeah; half of them want to end QE; the other half are going, "what Indian Reservation is this?". "What's this meeting about, again?". Groan.

Wed, 07/10/2013 - 14:13 | 3738307 TeMpTeK
TeMpTeK's picture

I voted to taper before I voted not to taper...

Wed, 07/10/2013 - 14:22 | 3738356 francis_sawyer
francis_sawyer's picture

I've often thought about studying law... BEFORE I've always thought about becoming a rabbi... BEFORE I've always thought about becoming a golf club... BEFORE I decided to go to work for the FED...

Wed, 07/10/2013 - 15:11 | 3738559 SAT 800
SAT 800's picture

Taper before voting; then shove it up the candidates butt.

Wed, 07/10/2013 - 14:15 | 3738295 fonzannoon
fonzannoon's picture

and it takes them 25 pages to say this 

whatever. Crude and the 10yr is all that matters. The next gdp should be funny as shit, and the taper is data dependent. what a long fuckin way to say QE4eva

Wed, 07/10/2013 - 14:13 | 3738308 TruthInSunshine
TruthInSunshine's picture

Bernank & the gang at the FOMC are like a pretzels, all contorted, trying to keep equity "markets" from imploding, trying to cap the ass of ^TNX, and simultaneously attempting to slap oil's boner down.

Wed, 07/10/2013 - 14:14 | 3738314 fonzannoon
fonzannoon's picture

two cnbc guys are competing as to who can hypothetically suck the S&P 500's dick moar.

Wed, 07/10/2013 - 14:18 | 3738336 Bay of Pigs
Bay of Pigs's picture

Maybe Mandy can help with that? She gotz a purdy mouf.

Wed, 07/10/2013 - 14:18 | 3738339 TruthInSunshine
TruthInSunshine's picture

Steve LIESman just bet Bob Pissant 10 Bernanks that he could suck a golf ball through a garden hose, when Becky Quick interrupted them on a schizoid rant about how she'll "drink everyones' milkshakes."

Weird shit at CNBS. Maybe ratings are down?

Wed, 07/10/2013 - 14:39 | 3738423 ebworthen
ebworthen's picture

Mandy Drury looking pretty spicy today in her sleeveless purple Summer dress buttoned down to show off the cleavage.

Wed, 07/10/2013 - 14:54 | 3738484 RockyRacoon
RockyRacoon's picture

She has that trailer-park-trash air about her that we down here in the South love so much.  The dyed blonde hair with ample dark roots is the key element.  Like Dolly Parton once said, it costs a lot to look that cheap.

Wed, 07/10/2013 - 15:20 | 3738597 Herd Redirectio...
Herd Redirection Committee's picture

Trophy wives are goddamn enablers.  If every trophy wife and prostitute refused to be seen on the arm of Bloomberg, Blankfein, Buffett etc. we could end this all a lot quicker.  Not much incentive to the trophy wives, although, they would be national heros...

Wed, 07/10/2013 - 14:19 | 3738342 jmcadg
jmcadg's picture

Just two?

Wed, 07/10/2013 - 14:21 | 3738351 JonNadler
JonNadler's picture

if Betty is around it's no contest

Thu, 07/11/2013 - 00:09 | 3740405 StychoKiller
Wed, 07/10/2013 - 14:26 | 3738379 WarriorClass
WarriorClass's picture

Thieves Guarding the Bank, Traitors Guarding the Country.

http://americandictators.blogspot.com/

Wed, 07/10/2013 - 14:33 | 3738413 crazyjsmith
crazyjsmith's picture

"Best way to rob a bank is to own one"
William Black

Wed, 07/10/2013 - 14:07 | 3738262 AllThatGlitters
AllThatGlitters's picture

Wow, look at Gold and Silver spot prices reacting:

Real Time:

http://www.pmbull.com/gold-price/

http://www.pmbull.com/silver-price/

Will they reverse shortly?  They always do. First reaction never seems to be the final reaction.

Wed, 07/10/2013 - 14:25 | 3738368 BurningFuld
BurningFuld's picture

Not Gold and Silver rising,but the USD collapsing.

Wed, 07/10/2013 - 14:23 | 3738357 outamyeffinway
outamyeffinway's picture

Ground hog day all over again. Same shit, different day. Year in, year out. And yet the fish keep biting.

Wed, 07/10/2013 - 14:17 | 3738253 The Thunder Child
The Thunder Child's picture

My god, it's full of lies...

Wed, 07/10/2013 - 14:06 | 3738254 AllThatGlitters
AllThatGlitters's picture

Buying the dip?

Wed, 07/10/2013 - 14:09 | 3738285 disabledvet
disabledvet's picture

or some dip is buying? you be the judge...(jury, executioner, etc.)

Wed, 07/10/2013 - 14:16 | 3738325 AllThatGlitters
AllThatGlitters's picture

Buying from the dipshits.

Wed, 07/10/2013 - 14:06 | 3738255 fuu
fuu's picture

Watch me pull a rabbit out of my hat.

Wed, 07/10/2013 - 14:10 | 3738287 knukles
knukles's picture

That's from Bull-Wankel, no?

Wed, 07/10/2013 - 14:12 | 3738299 fuu
fuu's picture

"Consumer price inflation was subdued, partly reflecting transitory influences. However, measures of longer-run inflation expectations remained stable.", quavered the Beard.

Wed, 07/10/2013 - 14:27 | 3738355 TruthInSunshine
TruthInSunshine's picture

"Watch me pull a rabbit out of my hat."

& then he just rips the fur off the poor bunny.

Sorry - Obligatory.

h/t Lewis Black

Wed, 07/10/2013 - 14:35 | 3738417 derek_vineyard
derek_vineyard's picture

"this time for sure"

Wed, 07/10/2013 - 14:58 | 3738499 RockyRacoon
RockyRacoon's picture

Remember that Rocky was the flying squirrel.  Alas, there were no coons on the show.  My Gideon Bible collection has grown exponentially.

Wed, 07/10/2013 - 14:11 | 3738296 francis_sawyer
francis_sawyer's picture

Don't go chasing rabbits...

~~~

http://www.youtube.com/watch?v=2zf_AMkxYl8

Wed, 07/10/2013 - 14:22 | 3738352 samsara
samsara's picture

"I gotta get a new hat..."

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