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Fed Tapers Another $10 Billion, Slashes Growth Expectations, Says Policy "Remains Appropriate"
With modest positive growth adjustments expected, a continued taper (of $10bn), and no "rate-hikes-are-imminent" warnings, the FOMC statement provides more dovish confidence.
- FED REPEATS LOW RATE LIKELY FOR CONSIDERABLE TIME AFTER QE ENDS
- FED SAYS HIGHLY ACCOMMODATIVE POLICY `REMAINS APPROPRIATE'
- FED TAPERS BOND BUYING TO $35 BLN MONTHLY PACE FROM $45 BLN
But...
- FED: 2014 GDP GROWTH OF 2.1%-2.3% VS 2.8%-3.0% IN MARCH
So everything's fine, taper is on... but we are slashing growth this year dramatically. Pre-FOMC: S&P Futs 1933, Gold $1271, 10Y 2.62%, 2Y 0.46%
The redline from the April statement shows barely any changes, and certainly all the qualitative language is virtually untouched.
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Fuck the Fed
They forgot the negative signs in front of those GDP numbers.
Check out gold dipping:
Live Chart: http://www.pmbull.com/gold-price/
Love the whipsaws post-fed.
"We have no idea why what we're doing isn't working, so we're gonna quit. But it's working, so it's appropriate."
Given the taper is but a sleight-of-hand, CONfidence inducing mechanism, I eagerly await the day when "the market" has to react to no more QE left to "taper."
Should be fun.
So who's got the word-count on this one?
Hilsenrath had it two days ago.
USA needs to follow the UK and cut government budgets.
Short term pain but necessary.
Also stop throwing taxpayers under the wheels of Zombie banks.
Fed Redirects Another $10 Billion To "Belgium", Slashes Growth Expectations...
Fixed it! ;)
So......... I guess the mystery buyer in Belgium will be adding 10 billion or so to their buying program.
Cause someone's gotta make up the difference.
That was fun.
We now return to our regularly scheduled HFT sodomization of the market.
Yup
Not rocket surgery. Leveraged economies can't do much beyond 300 bps.
On another news, it's game on until the conditioning of 1994/95 take hold. Then again, market was pricing in a full Taper by August led by bear side, so its kind of positive for another few months.
Be sure to TIPS your waiter. (sic)
Fed tapers 10 billion, 'Belgium' increases bond buying by 20 billion
Yep, this QE is peanuts of the CBs really have 29 trillion tired up in the market.
pods
Now compare gold to the strength of The Mighty Silver:
http://www.pmbull.com/silver-price/
"FED: 2014 GDP GROWTH OF 2.1%-2.3% VS 2.8%-3.0% IN MARCH"
That looks an awful lot like a knife shoved in the back of January bond shorters.
Buying gold and silver is the ultimate FU to the Fed.
The problem has been that we've been paying a lot to merely flip the fed off.
When is the reward for standing up?
precisely Glitter...
"they hate us for are Real Money..."
Buy the announcement, sell the presser.
It's all Bullshit!!!
as long as Stanley Fischer signed off on this, then I'm OK with it, because he's a true American patriot! Always putting his country first...
The_Ungrateful_Yid wrote "FUCK THE FED"
No the Fed will Fuck you many times over as the grand puppeteers are hard at work to enslave everyone. Look up the Denver International Airport murals. A major genocide is coming sooner than anyone can imagine.
Paging Belgium...
Help a brother out...
Yahtzee
Now if only the EPA would pull the boot off of everyone's throat.
Belgium will save us.
Isn't that where the EU was born?
"Help us O-Belgium-Konobe, you're our only hope!"
Fuck you Yellen.
Fuck you Yellen.
Fuck you Yellen's bosses!
Grandma slipped and fell and will be unable to attend the Q&A session post FOMC announcement.
Who the fuck junk votes down a 'fuck you yellen'?
Is steve lies-man on here today?
Hey stevie, does she have a dick? C'mon dude, we want to know
Who the fuck junk votes down a 'fuck you yellen'?
Not me.
Trolls
10B taper - now $35B per month
2.1 growth - that means 9 months at 4.1 growth to cover Q1
if it's not bullshit, then something is wrong
not "something"...EVERYTHING is wrong.
Hmm.
-1 + 4.1 + 4.1 + 4.1 = 11.3 / 4 = 2.83.
You're a bit off.
-1.6 +4.1*3=10.7/4=2.7
-1.6 +3x=2.1*4 => x= (8.4+1.6)/3=3.3
1.6 isn't official yet, but I'm glad to see I wasn't the only one to want to punch those numbers into a calculator.
and the market keeps rising?
As I said in my pre-Fed posts, to believe it is going to do anything other than rise is batshit crazy.
Fuck you Janet. Hope your next shit's a double hedgehog.
You are a criminal cunt, surrounded by, advised by, and called friend by, more criminal cunts.
I had a double helping of VIX yesterday and an extra helping of JPY cocktail for dinner.. I shit a double hedgie, backwards this morning. I think the guy in the stall next to me heard me crying.
yeah they tapering while buying 80% of all new issuances and buying 29 trillion in overpriced equities to keep the Fraud Markets elevated...
listen up...
KEEP STACKIN.
Nope, no computers here...
http://s9.postimg.org/4bn8qpc33/esf.jpg
ES_F
And "Belgium" just found another 10 billion in its monthly account....somehow.
I remember in 06 the fed would hike rates .25% at every meeting like clockwork and then all of a sudden....BOOM! Next thing you know in 07 they can't cut rates fast enough. It will be that same way with the pretend taper.
Of course the questions that will never be asked by the special prosecutor that will never be appointed:
Who know what and when did they know it????????????????............................
They must continue the taper, because the inflation monster is stirring!
Again, I will remind everyone that the CBO's rosey 10 year debt projections are totally reliant upon 4.0%+ GDP growth from 2014 on out.
We can get the 4% by keeping the dollar as reserve currency. We must make the middle east become part of US.
"Normalization" has become "normal a nation."
Looks like annual 2% GDP growth is the tipping line not be be crossed below, and Zeno's paradox as we get closer to 2%.
The Hard Drive with that forecast is missing
"Again, I will remind everyone that the CBO's rosey 10 year debt projections are totally reliant upon 4.0%+ GDP growth from 2014 on out."
And $83-$75 oil. The gubmint burns a lot of oil.
Another 10 Billion to Belgium! lol!
Why does everybody here bash Yellen when she's paring back the policy that drew your ire in the first place? Is there anything she can do to win with you?
The taper is on. Be happy.
.. and rates are kept at historical lows. Don't look to where the Fed is pointing, look to what they are actually doing.
Good point.
Down arrow anyway. Just because.
LOL... gotta appreciate an honest man!
here is my guess. the fed "printed" all this money. the currency did not collapse. the economy legged down and the middle class dropped dead. Meanwhile stawks and high end real estate went through the roof. the rich got richer, the poor got poorer. Now that the fed has bought the market and seems to be able to prevent a crash they are sticking a "mission accomplished" sign in the ground, withdrawing stimulus, and telling the middle class "you're welcome".
it's a bit irritating, especially for those who purchased pm's etc as insurance and have to stand by and watch this go on and on.
Your analysis is predicated on the assumption that the Fed is interested in doing something good for society as a whole, rather than exclusively for the banksters.
Perhaps the stawks the Fed is buying are being sold to them by the big banks, who are smart enough to know to sell but have no one else to buy their crap. Perhaps the Fed plans to tank the market so that said banksters will be able to reap huge profits on the way down and then cover and buy back at the bottom. It's not as if the Fed has to account for any details of it's counterfeiting activity.
maybe you were not talking to me. My apologies.
Yep, corner the bond market with unlimited fiat printing and CB shell games to take out the bond vigilantes. A perpetual ponzi with no downside for the elites. Pump equities and high end assets, and force any residual carryover inflation to low end assets and staples (food, energy, utilities, housing, HC) to be absorbed by the masses tightening their belt. Meanwhile the elites don't even notice the rise in staple cost becaue they dine on Kobe Beef, Lobster and Caviar at the bubble trough. Siphon off some of that largesse to the Govt. in 2 ways - benefits to the sheep to soften the higher Ponzi induced staple costs, plus expand the Security State to insure any "complaints" by the masses are controlled. Welcome to the New Feudal World Order.
This has all been brilliantly planned by sociopath bankers for years, really gaining traction beginning in the 70's, becoming entrenched in the 90's, and unremoveable now. A Perpetual Ponzi. The only threat is REAL shortages of staples (food, water, energy, housing) for the masses. Central planning always results in shortages because of misallocation of resources (ie Soviet Union). But we are years, maybe decades, from Mad Max or Soylent Green shortages that will be needed for the catalyst for real revolution.
there is no taper. u mad bro?
edit
keep in mind that shemale has the fed funds rate at ZERO still.
plenty of reasons to say, fuck ol yeller imho
The free money spigot is slowing in the eye of the public - behind the scenes the free money will still flow. They just cut GDP, AGAIN, and stated rates will stay low for an extended time. IOW - free money to the TBTF banksters as long as they keep the stock market elevated. If they need to lower rates, they always have the MIC to provide the 'impetus' to force/scare people into bonds.
Exactly. It has become common knowledge that QE has, is, and will cause inflation. The FED and .GOV was able to explain away the inflation but they can't any more. They are "tapering" so that when they admit to inflation that can say that QE didn't cause it because they are tapering. However, someone in Belgium is buying all of the shit and their bank accounts are getting extra zeros from somewhere.
Are you trying to sound stupid, or does it just come naturally?
"Why does everyone dislike Yellen?"
Maybe it's becasue she has repeatedly stated that she would gladly make interest rates negative.
Yep, I guess ZIRP's been long enough now, we definitely a case of Stockholm Syndrome here.
ummm ... taper = no crash? what is wrong with this picture? are we all wrong on ZH?
belgium bro..... belgium.
QE/month = $35B
Illegals/month = 35K
As QE goes down, slave labor up.
This may be the future meme...and parallels the fall of Rome.
It is Mexican or Belgian chocolate sweets for the US economy as QE deflates.
Belgium has a very high unemployment rate and probably a lot of cheap labor...meme.
"Belgium." Bwhahahahahahaha. Growth is slowing everywhere.
"Buying time" (for a recovery that has failed to materialize) not debt.
That says to me the problem is your bond buying program.
Devotional,
No one (well, 99.99999%) can create wealth. So, what to do? Keep buying stocks. If you don't, you won't have as many claims on real wealth as you'd like.
and everything turns green , guess new record highs either today or tomorrow then?
Sure they can Taper all they want when we know Belgium is the back door fed invisible hand buying Treasuries. Fuck it they even admitted basically they are buying stocks or SPYs and god knows what else because they truly believe in the year 2022 they will sell for a profit to a booming economy..
It doesn't work that way and when the event comes that slashes their hidden assets in half or more well than there is no coming back for us as a nation without a revolution let alone an economy..they had their chance to fix it in 2008 now this can only end one way.
Who even cares about the fed minutes at this point they never deviate for 6 years almost now..
We get It....ZIRP for life
They were never gonna let that 10 year get above 3% because that and war is the only thing that ends this charade...enter "Belgium" stage right miraculously on time.
Imagine the huge banking losses if rates rose to 3 or 4 or 5%.
10B cut, 50B to belgium
3% plus still baked into 2H. Ridiculousness. GDP for year sub 2%
I hear there is a bipartisan bill to increase the federal gasoline tax.
If the ungrateful serfs would just drive more miles, they could fund all the foreign wars plus the domestic police state and welfare programs without having to rely on "growth".
Taxing isnt inflationary to the cabal...
Just this..and they get a great lunch too....wow I could do this...
Is it really tapering if Belgium ups it buying?
edit. whadya know. everyone else had the same post.
there is no way they r actually tapering.
they can say all they want that they continue to do so, but we all know the truth
Holy shit. Fed announces taper, Market shoots green.
WE HAVE LIFT-OFF! HOT DAMN, KEVIN. You fucking spectacular SOB. You just shot the moon. it's off to the bar, pump-humpers. Drinks on me... i mean, the muppets. Hot Damn, I love my job. Where else can ya set shit on fire, get paid, and retire at 35?! WHOA!
All part of the fuckin plan, madcows, all part of the plan.
buy muthafuckin stawks!
Buy Buy Buy
Can't help myself...
"$10 billion taper" and military blimps to spot incoming ballistic and cruise missiles just seem to go together these days. Something about the timing???
Sure hope the ABM system we've spent billions on over the past 3 decades is "better than this", or at least we hope so...
Nothing to see here folks run along!...
And as a bonus... You've been warned!
https://www.youtube.com/watch?v=WrfTyda8ZYs
The FEDs QE and ZIRP are forcing investors out of CDs and savings and into the stock market. Thats the FEDs plan. The FED wont ever let the stock market bubble pop.
...and importing cheap/slave labor at the southern border will keep retail demand and labor humming.
Rome fell the same way.
Fed "economists" fail to understand the diminshing marginal return of debt, even though they have pumped trillions of debt into the system and acknowledge that there is no growth. Willfull blindness is the order of the day.
Coincidentally, Belgium has decided to increase its purchases another $10 billion/month. Who'd a thunk it?
FED backs EU <---> EU backs FED.
The modern Fiat tautology.
Society's elite just uncorked another bottle of Dom. It is funny how a fund manager long 500 bn in stocks does not think inflation is a problem.
FED: 2014 GDP GROWTH OF 2.1%-2.3% VS 2.8%-3.0% IN MARCH
That is quite a bit of error. From a midpoint of 2.9% (previous estimate range) to a midpoint of 2.2% (current estimate range) is an adjustment of approximately 25%. Who gets to be that wrong without consequences? Oh, the Fed apparently does.
FedFUBAR.
She claims no real inflation. Maybe she ought to visit the grocery store more often. It's all about keeping the ponzi going. If she even talks about raising rates, this market will fall so fast your head will spin.
The market is up again because it knows she is completely ignoring the real economy and will keep her bankster bosses happy.........
Q1 growth was negative. Q2 growth is negative. Fed is lying.
http://www.zerohedge.com/news/2014-04-30/gdp-shocker-us-economic-growth-...
Well they've got to show they r doing something and let's face it, QE hasn't helped most people, apart from continuing bubbles and keeping status-quo.
So, next month we learn that Belgium increases Bond purchases by 10 billion per month?
Can't help themselves...gotta get them historically high interest bonds.
DK
fucking lazy people get to work! the GDP is falling! damn it!