• Sprott Money
    05/26/2016 - 05:58
    How many “emergency” “secret” meetings do the central planners around the world need to have before the citizens of the respective countries begin to fully understand and take notice that something...

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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Wed, 03/19/2014 - 14:05 | 4568554 ejmoosa
ejmoosa's picture
Loosens (Lower For Even Longer)

And who did not see this coming?

Wed, 03/19/2014 - 14:07 | 4568573 Aeternus
Aeternus's picture

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

Wed, 03/19/2014 - 14:10 | 4568589 Soul Glow
Soul Glow's picture

<---- Taper is tightening

<---- Tapering is still a loose policy

Wed, 03/19/2014 - 14:13 | 4568621 BaBaBouy
BaBaBouy's picture

ANOTHER FED paper-GOLD SMASH SMASHSMASHSMASH...

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

Wed, 03/19/2014 - 14:15 | 4568637 Troll Magnet
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.

Wed, 03/19/2014 - 14:26 | 4568694 Soul Glow
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.  

Wed, 03/19/2014 - 14:15 | 4568601 BaBaBouy
BaBaBouy's picture

.

Wed, 03/19/2014 - 16:00 | 4569246 Moustache Rides
Moustache Rides's picture

i almost died laughing watching that

Wed, 03/19/2014 - 14:08 | 4568577 Max Hunter
Max Hunter's picture

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

Wed, 03/19/2014 - 14:10 | 4568596 McMolotov
McMolotov's picture

Kneel before ZIRP.

Wed, 03/19/2014 - 14:14 | 4568626 El Vaquero
El Vaquero's picture

Did ZIRP kick even Zod's ass?

Wed, 03/19/2014 - 14:17 | 4568647 asteroids
asteroids's picture

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

Wed, 03/19/2014 - 14:26 | 4568707 Bunga Bunga
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?

Wed, 03/19/2014 - 14:12 | 4568615 dtwn
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

Wed, 03/19/2014 - 15:11 | 4568977 Seer
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)

Wed, 03/19/2014 - 14:05 | 4568557 Bangin7GramRocks
Bangin7GramRocks's picture

Party on Garth!

Wed, 03/19/2014 - 14:05 | 4568559 101 years and c...
101 years and counting's picture

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

Wed, 03/19/2014 - 14:08 | 4568583 Martial
Martial's picture

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

Wed, 03/19/2014 - 14:13 | 4568624 gjp
gjp's picture

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

Wed, 03/19/2014 - 14:35 | 4568725 Soul Glow
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!"

Wed, 03/19/2014 - 14:05 | 4568560 Hero Protagonist
Hero Protagonist's picture

Until debt service exceeds tax revenue, nothing will change.

Wed, 03/19/2014 - 14:15 | 4568635 John McCloy
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.

Wed, 03/19/2014 - 14:06 | 4568561 El Vaquero
El Vaquero's picture

LOLOLOL!  Vertical DOWN in stocks. 

 

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

Wed, 03/19/2014 - 14:06 | 4568566 digitlman
digitlman's picture

Less than a minute?

Wed, 03/19/2014 - 14:07 | 4568571 digitlman
digitlman's picture

Nope..spoke too soon...

Wed, 03/19/2014 - 14:10 | 4568602 El Vaquero
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.

Wed, 03/19/2014 - 14:16 | 4568642 Divided States ...
Divided States of America's picture

Oh, so youre not Jewish

Wed, 03/19/2014 - 14:23 | 4568690 Quinvarius
Quinvarius's picture

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

Wed, 03/19/2014 - 14:06 | 4568567 Kaiser Sousa
Kaiser Sousa's picture

THE WIZARD HAS SPOKEN....

NOW SELL ALL UR REAL MONEY...

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

keep stackin.....

Wed, 03/19/2014 - 14:10 | 4568570 Chuck Knoblauch
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

Wed, 03/19/2014 - 14:08 | 4568574 MFLTucson
MFLTucson's picture

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

Wed, 03/19/2014 - 14:08 | 4568576 Obama_4_Dictator
Obama_4_Dictator's picture

Seriously, I want off this planet!

Wed, 03/19/2014 - 14:10 | 4568600 1stepcloser
1stepcloser's picture

You missed your flight, MAL 370

Wed, 03/19/2014 - 14:21 | 4568674 Bastiat
Bastiat's picture

Indefinite layover at Diego Garcia.

Wed, 03/19/2014 - 14:19 | 4568655 Miffed Microbio...
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;-)

Wed, 03/19/2014 - 15:00 | 4568912 NOTaREALmerican
NOTaREALmerican's picture

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

 

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

Wed, 03/19/2014 - 14:08 | 4568578 Dr. Engali
Dr. Engali's picture

Stocks down momentarily.... BTFD.

Wed, 03/19/2014 - 14:11 | 4568605 fonzannoon
fonzannoon's picture

stocks will reverse. gold not so much...

Wed, 03/19/2014 - 14:23 | 4568686 Dr. Engali
Dr. Engali's picture

I should have said BTFD right this second!

Wed, 03/19/2014 - 14:09 | 4568579 fxrxexexdxoxmx
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.

Wed, 03/19/2014 - 14:08 | 4568580 Charles Nelson ...
Charles Nelson Reilly's picture

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

 

Wed, 03/19/2014 - 14:08 | 4568582 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

(more tightening according to Jim Bullard)

Translated Belgian Waffle kicksave again.

Wed, 03/19/2014 - 14:14 | 4568625 Quinvarius
Quinvarius's picture

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

Wed, 03/19/2014 - 14:09 | 4568584 trillion_dollar...
trillion_dollar_deficit's picture

ZIRP4EVA&EVA

Wed, 03/19/2014 - 14:09 | 4568592 fonzannoon
fonzannoon's picture

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

Wed, 03/19/2014 - 14:13 | 4568617 LawsofPhysics
LawsofPhysics's picture

not for everyone, but for some, yes.

Wed, 03/19/2014 - 14:19 | 4568658 Crash Overide
Crash Overide's picture

It really is different this time.

Wed, 03/19/2014 - 14:10 | 4568597 Hindenburg...Oh Man
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?

Wed, 03/19/2014 - 14:10 | 4568598 sudzee
sudzee's picture

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

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