Yellen's Fed Tightens ($10bn Taper) And Loosens (Lower For Even Longer); Blames Weather - Full Statement Redline

Tyler Durden's picture

As expected Janet Yellen's first FOMC statement showed another $10bn taper (more tightening according to Jim Bullard) but the wordy shift from quantitative thresholds to "we'll know it when we see it" qualitative guidance is relatively dovish (despite improved economic outlooks):

  • FOMC SEES `SUFFICIENT UNDERLYING STRENGTH' IN ECONOMY
  • FOMC SAYS IT WILL LIKELY REDUCE QE IN `FURTHER MEASURED STEPS'
  • FED: LOW TARGET RATE APPROPRIATE FOR CONSIDERABLE TIME POST-QE
  • MORE FED OFFICIALS SEE AT LEAST 1% FED FUNDS RATE END OF 2015

Most importantly perhaps, if expected, forward guidance is now dead, as it is a confirmed failure:

  • FED DROPS 6.5% JOBLESS THRESHOLD FOR RAISING FED FUNDS RATE

While Bernanke's last meeting appeared full of disagreement; this time less so (as Plosser and Fisher appeared not to dissent). Full redline to follow.

Pre-FOMC: S&P Futs: 1873.5, Gold $1337, 10Y 2.712%, USDJPY 101.65

The hand-waving begins:

  • FOMC TO WEIGH `WIDE RANGE OF INFORMATION' ON JOBS, INFLATION

As they lower growth outlook and lower unemployment outlook?!

  • FED: 2014 GDP GROWTH OF 2.8%-3.0% VS 2.8%-3.2% IN DECEMBER (lower growth)
  • FED: END-2014 JOBLESS RATE AT 6.1%-6.3% VS 6.3%-6.6% IN DEC. (but lower unemployment)

Full statement redline below

 

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ejmoosa's picture
Loosens (Lower For Even Longer)

And who did not see this coming?

Aeternus's picture

This is what is coming...... In two minutes....... https://www.youtube.com/watch?v=1oZx8XD9U8s

Soul Glow's picture

<---- Taper is tightening

<---- Tapering is still a loose policy

BaBaBouy's picture

ANOTHER FED paper-GOLD SMASH SMASHSMASHSMASH...

Broadcast: """ ALL IS FINE!!! """

Troll Magnet's picture

I love it.  I wish they'd smash it all the way down to $900 because I have fiat and I have a truck.  Bring it, central planning bitches.  I'm ready.

Soul Glow's picture

Tapering is still a loose policy and a loose policy is always a desperate attempt.  Desperate attempts create desperate measures and when taken they usually fail.

Gold demand has soared since Brown's Bottom and continues to climb.  The supply is not increasing drastically, and any utopian theory that thinks we will be mining asteroids in the coming decades needs their brain checked.  

Moustache Rides's picture

i almost died laughing watching that

Max Hunter's picture

Good news for Belgium!! Now they can buy more treasureies at this great rate!

El Vaquero's picture

Did ZIRP kick even Zod's ass?

asteroids's picture

FED: "ZIRP forever!" Bond market: Fuck you!

Bunga Bunga's picture

The actual Federal Reserve is located in Belgium. Why did Bernanke leave and let a woman run the outlet in DC?

dtwn's picture

I maintain that we won't see talk of untapering until either the Sep or Dec FOMC meetings.  We've got to see how bad the housing market gets this spring/summer.  And maybe let the markets crash a little bit. Just to see how it feels.

 

Just the tip to see how it feels:

http://www.youtube.com/watch?v=1tgS1n7DQbY

Seer's picture

But aren't they already talking about it?  Perhaps you meant that it [action] couldn't actually happen before September? (and good reasoning there)

101 years and counting's picture

"we still have no clue what we're doing, so we print money and lie monthly"

Martial's picture

Print and Lie.....oh THAT'S what P&L stands for!

gjp's picture

And they all buy up the USD like crazy - against PMs and other currencies too.  What a horror show

Soul Glow's picture

Just because the instinct of the masses is to sell gold when their investment bankers tell them to, because their firms have sell ratings on them, and buy dollars - what is still the reserve currency - doesn't mean it is a wise long term move.  The fact that no trader wants his clients to own gold, because the trader doesn't get a bonus from selling off the firms buy list, shows how rampant they will sell when the client says, "Fine, sell the gold."

How many people have tried to buy "gold" - paper as it is - through a financial advisor?  They just won't do it, or they will make a note that it was their client's idea.  Then they finally convince the client to sell, and they will try to get you to sell the GLD because, "Gold is a bad investment....my firm recommends against it....and we could buy CVX!  They are about to take over the Ukrainian pipeline!"

Hero Protagonist's picture

Until debt service exceeds tax revenue, nothing will change.

John McCloy's picture

   The 10 year is looking to take care of that real soon...anyone questioning why the 10 Year has been defended from crossing 3% only need to look at the suddenly wealthy nation of Belgium...they are probably repoing trash back to the Fed so that they can buy hand over fist but now we know a few things:

1) Nations are less willing to purchase our debt 

2) The Fed is cutting secret deals to hand cash to foreign banks to make up the difference

3) Russia is not puchasing any more of our debt likely 

4) There will be no 2015 rate rise they cannot afford to stop QE let alone raise rates.

And what happens if Russia and China start dumping en masse? Who's gonna pick up the slack? Not even the Fed can print enough and we are going to pretend we have an option in Ukraine? The U.S. will do nothing Putin will have the whole nation within 2 years and as this point China probably knows they can have Sennuku Islands...fuck it maybe even Taiwan..

AND THIS IS THE INHERENT DANGER WHEN YOU MORTGAGE YOUR NATIONS FUTURE..NO FINANCIAL LEVERAGE. 

  This year is going to be a sight to see..I mean a sight to see.

El Vaquero's picture

LOLOLOL!  Vertical DOWN in stocks. 

 

(Now let us see how long that lasts.  Fucking HFTs.)

El Vaquero's picture

There's a reason why I wouldn't play in the stock market with anything that I couldn't afford to lose.

 

I'm not an insider.

Quinvarius's picture

Stocks not allowed to go down while Janet speaks.  So maybe another 45 minutes of wishy washy action before blast off.

Kaiser Sousa's picture

THE WIZARD HAS SPOKEN....

NOW SELL ALL UR REAL MONEY...

not....goin to my dealer later this afernoon.....

keep stackin.....

Chuck Knoblauch's picture

Spells austerity for those relying on a fixed income for their survival.

What major retailer is going bankrupt next?

Central bank shareholders say, ME SO HORNEY, SUCK E SUCK E YOU LONG TIME.

 

http://www.youtube.com/watch?v=JEEWE7gcPw0

MFLTucson's picture

This bullshit is simply disgusting.  Who dumped the 105 Billion in Traesuries last week Yellen and why?

Obama_4_Dictator's picture

Seriously, I want off this planet!

1stepcloser's picture

You missed your flight, MAL 370

Bastiat's picture

Indefinite layover at Diego Garcia.

Miffed Microbiologist's picture

Well, I failed to make the first cut on Mars One. Best of luck to you if you decide to apply.

Miffed;-)

NOTaREALmerican's picture

Re:  Well, I failed to make the first cut on Mars One

 

Let me guess...   Too pessimistic?    Not a team player?

Dr. Engali's picture

Stocks down momentarily.... BTFD.

fonzannoon's picture

stocks will reverse. gold not so much...

Dr. Engali's picture

I should have said BTFD right this second!

fxrxexexdxoxmx's picture

I can not remember how many times this poster or that commented that once the 6.5 % unemployment threshold was met it would just be changed since it never mattered.

These skimmers will never give up their vig.

Charles Nelson Reilly's picture

ahhh, there is the smash in metals I knew was coming!

 

Dewey Cheatum Howe's picture

(more tightening according to Jim Bullard)

Translated Belgian Waffle kicksave again.

Quinvarius's picture

They never tighten.  They just stop admitting what they are doing.

fonzannoon's picture

so zirp forever ever ever has yields moving higher...

LawsofPhysics's picture

not for everyone, but for some, yes.

Crash Overide's picture

It really is different this time.

Hindenburg...Oh Man's picture

Well between the Crimea situation being "resolved", and now the "economy" and "tapering" has been sorted out, fixed or whatever you want to call it, it's been one hell of a week for gold and the mining stocks. Can we call it a week and start again on Monday? Please?

sudzee's picture

Russia and China demanding higher rates or risk a dump. Its tough when your broke.