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Fed Tapers Another $10 Billion, Slashes Growth Expectations, Says Policy "Remains Appropriate"

Tyler Durden's picture




 

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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Wed, 06/18/2014 - 14:04 | 4870239 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Fuck the Fed

Wed, 06/18/2014 - 14:06 | 4870262 StacksOnStacks
StacksOnStacks's picture

They forgot the negative signs in front of those GDP numbers.

Wed, 06/18/2014 - 14:07 | 4870274 AllThatGlitters
AllThatGlitters's picture

Check out gold dipping:

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

Love the whipsaws post-fed.

Wed, 06/18/2014 - 14:09 | 4870284 Xibalba
Xibalba's picture

"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."

Wed, 06/18/2014 - 14:10 | 4870291 NotApplicable
NotApplicable's picture

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.

Wed, 06/18/2014 - 14:12 | 4870305 NoDebt
NoDebt's picture

So who's got the word-count on this one?

Wed, 06/18/2014 - 14:17 | 4870330 ebworthen
ebworthen's picture

Hilsenrath had it two days ago.

Wed, 06/18/2014 - 14:22 | 4870369 Occident Mortal
Occident Mortal's picture

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.

Wed, 06/18/2014 - 14:33 | 4870411 ZerOhead
ZerOhead's picture
Fed Tapers Another $10 Billion, Slashes Growth Expectations By $10 Billion...
Wed, 06/18/2014 - 14:53 | 4870549 ThirdWorldDude
ThirdWorldDude's picture

Fed Redirects Another $10 Billion To "Belgium", Slashes Growth Expectations...

 

Fixed it! ;)

Wed, 06/18/2014 - 15:20 | 4870665 Thought Processor
Thought Processor's picture

 

 

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.

Wed, 06/18/2014 - 14:11 | 4870301 Say What Again
Say What Again's picture

That was fun.

We now return to our regularly scheduled HFT sodomization of the market.

Wed, 06/18/2014 - 14:22 | 4870344 aVileRat
aVileRat's picture

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)

 

 

Wed, 06/18/2014 - 14:09 | 4870285 RevRex
RevRex's picture

Fed tapers 10 billion, 'Belgium' increases bond buying by 20 billion

Wed, 06/18/2014 - 14:16 | 4870323 pods
pods's picture

Yep, this QE is peanuts of the CBs really have 29 trillion tired up in the market.

pods

Wed, 06/18/2014 - 15:23 | 4870647 wanderintheland
wanderintheland's picture

Now compare gold to the strength of The Mighty Silver:

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

Wed, 06/18/2014 - 14:23 | 4870371 CrashisOptimistic
CrashisOptimistic's picture

"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.

Wed, 06/18/2014 - 14:09 | 4870264 AllThatGlitters
AllThatGlitters's picture

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?

Wed, 06/18/2014 - 14:14 | 4870317 Kaiser Sousa
Kaiser Sousa's picture

precisely Glitter...

"they hate us for are Real Money..."

Wed, 06/18/2014 - 14:09 | 4870287 slaughterer
slaughterer's picture

Buy the announcement, sell the presser. 

Wed, 06/18/2014 - 14:23 | 4870370 stocktivity
stocktivity's picture

It's all Bullshit!!!

Wed, 06/18/2014 - 14:30 | 4870408 Squid Viscous
Squid Viscous's picture

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...

Wed, 06/18/2014 - 14:36 | 4870455 Leonardo Fibonacci2
Leonardo Fibonacci2's picture

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.

Wed, 06/18/2014 - 14:05 | 4870241 THX 1178
THX 1178's picture

Paging Belgium...

Help a brother out...

Wed, 06/18/2014 - 14:10 | 4870293 Vagabond
Vagabond's picture

Yahtzee

Wed, 06/18/2014 - 14:04 | 4870242 NidStyles
NidStyles's picture

Now if only the EPA would pull the boot off of everyone's throat.

Wed, 06/18/2014 - 14:04 | 4870243 Dr. Engali
Dr. Engali's picture

Belgium will save us.

Wed, 06/18/2014 - 14:24 | 4870374 NidStyles
NidStyles's picture

Isn't that where the EU was born?

Wed, 06/18/2014 - 15:10 | 4870628 SDShack
SDShack's picture

"Help us O-Belgium-Konobe, you're our only hope!"

Wed, 06/18/2014 - 14:04 | 4870244 B2u
B2u's picture

Fuck you Yellen.

Wed, 06/18/2014 - 14:05 | 4870253 CH1
CH1's picture

Fuck you Yellen.

Fuck you Yellen's bosses!

Wed, 06/18/2014 - 14:13 | 4870312 SHEEPFUKKER
SHEEPFUKKER's picture

Grandma slipped and fell and will be unable to attend the Q&A session post FOMC announcement.

Wed, 06/18/2014 - 14:27 | 4870378 Hippocratic Oaf
Hippocratic Oaf's picture

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

Wed, 06/18/2014 - 14:33 | 4870424 CH1
CH1's picture

Who the fuck junk votes down a 'fuck you yellen'?

Not me.

Wed, 06/18/2014 - 15:30 | 4870704 JRobby
JRobby's picture

Trolls

Wed, 06/18/2014 - 14:05 | 4870257 orangegeek
orangegeek's picture

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

Wed, 06/18/2014 - 14:07 | 4870267 alien-IQ
alien-IQ's picture

not "something"...EVERYTHING is wrong.

Wed, 06/18/2014 - 14:39 | 4870474 CrashisOptimistic
CrashisOptimistic's picture

 

Hmm.

-1 + 4.1 + 4.1 + 4.1 = 11.3 / 4 = 2.83.

You're a bit off.

 

 

Wed, 06/18/2014 - 14:51 | 4870529 kowalli
kowalli's picture

-1.6 +4.1*3=10.7/4=2.7

-1.6 +3x=2.1*4 => x= (8.4+1.6)/3=3.3

Wed, 06/18/2014 - 15:03 | 4870601 CrashisOptimistic
CrashisOptimistic's picture

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.

Wed, 06/18/2014 - 14:06 | 4870259 alien-IQ
alien-IQ's picture

and the market keeps rising?

Wed, 06/18/2014 - 14:11 | 4870297 AccreditedEYE
AccreditedEYE's picture

As I said in my pre-Fed posts, to believe it is going to do anything other than rise is batshit crazy.

Wed, 06/18/2014 - 14:07 | 4870260 RealityCheque
RealityCheque's picture

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.

Wed, 06/18/2014 - 15:11 | 4870630 madcows
madcows's picture

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.

Wed, 06/18/2014 - 14:06 | 4870263 Kaiser Sousa
Kaiser Sousa's picture

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.

Wed, 06/18/2014 - 14:07 | 4870266 order66
order66's picture

Nope, no computers here...

http://s9.postimg.org/4bn8qpc33/esf.jpg

ES_F

Wed, 06/18/2014 - 14:07 | 4870272 RealityCheque
RealityCheque's picture

And "Belgium" just found another 10 billion in its monthly account....somehow.

Wed, 06/18/2014 - 14:10 | 4870278 Dr. Engali
Dr. Engali's picture

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.

Wed, 06/18/2014 - 15:51 | 4870811 JRobby
JRobby's picture

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????????????????............................

Wed, 06/18/2014 - 14:09 | 4870280 twh99
twh99's picture

They must continue the taper, because the inflation monster is stirring!

Wed, 06/18/2014 - 14:09 | 4870286 trillion_dollar...
trillion_dollar_deficit's picture

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.

Wed, 06/18/2014 - 14:14 | 4870316 pocomotion
pocomotion's picture

We can get the 4% by keeping the dollar as reserve currency.  We must make the middle east become part of US.

Wed, 06/18/2014 - 14:18 | 4870345 disabledvet
disabledvet's picture

"Normalization" has become "normal a nation."

Wed, 06/18/2014 - 15:54 | 4870354 HardlyZero
HardlyZero's picture

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%.

Wed, 06/18/2014 - 14:21 | 4870359 GolfHatesMe
GolfHatesMe's picture

The Hard Drive with that forecast is missing

Wed, 06/18/2014 - 15:06 | 4870610 CrashisOptimistic
CrashisOptimistic's picture

"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.

Wed, 06/18/2014 - 14:09 | 4870288 MFL8240
MFL8240's picture

Another 10 Billion to Belgium! lol!  

Wed, 06/18/2014 - 14:10 | 4870289 GooseShtepping Moron
GooseShtepping Moron's picture

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.

Wed, 06/18/2014 - 14:12 | 4870308 FieldingMellish
FieldingMellish's picture

.. and rates are kept at historical lows. Don't look to where the Fed is pointing, look to what they are actually doing.

Wed, 06/18/2014 - 14:15 | 4870318 NoDebt
NoDebt's picture

Good point.

Down arrow anyway.  Just because.

Wed, 06/18/2014 - 14:35 | 4870443 CH1
CH1's picture

LOL... gotta appreciate an honest man!

Wed, 06/18/2014 - 14:18 | 4870320 fonzannoon
fonzannoon's picture

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.

Wed, 06/18/2014 - 15:18 | 4870655 eclectic syncretist
eclectic syncretist's picture

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.

Wed, 06/18/2014 - 19:19 | 4870939 fonzannoon
fonzannoon's picture

maybe you were not talking to me. My apologies.

Wed, 06/18/2014 - 15:38 | 4870749 SDShack
SDShack's picture

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.

Wed, 06/18/2014 - 14:18 | 4870328 maskone909
maskone909's picture

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

Wed, 06/18/2014 - 14:18 | 4870334 Ness.
Ness.'s picture

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.

 

 

Wed, 06/18/2014 - 14:29 | 4870400 insanelysane
insanelysane's picture

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.

Wed, 06/18/2014 - 14:26 | 4870375 RevRex
RevRex's picture

Are you trying to sound stupid, or does it just come naturally?

Wed, 06/18/2014 - 14:34 | 4870439 Snoopy the Economist
Snoopy the Economist's picture

"Why does everyone dislike Yellen?"

Maybe it's becasue she has repeatedly stated that she would gladly make interest rates negative.

Wed, 06/18/2014 - 15:41 | 4870754 bombdog
bombdog's picture

Yep, I guess ZIRP's been long enough now, we definitely a case of Stockholm Syndrome here.

Wed, 06/18/2014 - 14:12 | 4870298 Devotional
Devotional's picture

ummm ... taper = no crash? what is wrong with this picture? are we all wrong on ZH?

Wed, 06/18/2014 - 14:18 | 4870337 maskone909
maskone909's picture

belgium bro..... belgium.

Wed, 06/18/2014 - 14:25 | 4870364 HardlyZero
HardlyZero's picture

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.

Wed, 06/18/2014 - 14:31 | 4870412 disabledvet
disabledvet's picture

"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.

Wed, 06/18/2014 - 14:31 | 4870413 Hohum
Hohum's picture

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.

Wed, 06/18/2014 - 14:12 | 4870303 jubber
jubber's picture

and everything turns green , guess new record highs either today or tomorrow then?

Wed, 06/18/2014 - 14:12 | 4870306 John McCloy
John McCloy's picture

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.

Wed, 06/18/2014 - 14:19 | 4870350 madcows
madcows's picture

Imagine the huge banking losses if rates rose to 3 or 4 or 5%.

Wed, 06/18/2014 - 14:12 | 4870307 the not so migh...
the not so mighty maximiza's picture

10B cut, 50B to belgium

Wed, 06/18/2014 - 14:13 | 4870309 SDRII
SDRII's picture

3% plus still baked into 2H. Ridiculousness. GDP for year sub 2%

Wed, 06/18/2014 - 14:14 | 4870315 Emergency Ward
Emergency Ward's picture

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".

Wed, 06/18/2014 - 14:16 | 4870329 ziggy59
ziggy59's picture

Taxing isnt inflationary to the cabal...

Wed, 06/18/2014 - 14:16 | 4870324 youngman
youngman's picture

Just this..and they get a great lunch too....wow I could do this...

Wed, 06/18/2014 - 14:20 | 4870346 madcows
madcows's picture

Is it really tapering if Belgium ups it buying?

 

edit.  whadya know.  everyone else had the same post.

Wed, 06/18/2014 - 14:19 | 4870355 thismarketisrigged
thismarketisrigged's picture

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

Wed, 06/18/2014 - 14:26 | 4870377 madcows
madcows's picture

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!

Wed, 06/18/2014 - 14:34 | 4870432 Hippocratic Oaf
Hippocratic Oaf's picture

All part of the fuckin plan, madcows, all part of the plan.

buy muthafuckin stawks!

Buy Buy Buy

Wed, 06/18/2014 - 14:33 | 4870395 Son of Captain Nemo
Son of Captain Nemo's picture

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

 

Wed, 06/18/2014 - 14:29 | 4870396 asking4it2k
asking4it2k's picture

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.

Wed, 06/18/2014 - 15:58 | 4870846 HardlyZero
HardlyZero's picture

...and importing cheap/slave labor at the southern border will keep retail demand and labor humming.

Rome fell the same way.

Wed, 06/18/2014 - 14:30 | 4870404 MickV
MickV's picture

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.

Wed, 06/18/2014 - 14:31 | 4870405 Turin Turambar
Turin Turambar's picture

Coincidentally, Belgium has decided to increase its purchases another $10 billion/month.  Who'd a thunk it?

Wed, 06/18/2014 - 16:00 | 4870854 HardlyZero
HardlyZero's picture

FED backs EU  <--->  EU backs FED.

The modern Fiat tautology.

Wed, 06/18/2014 - 14:34 | 4870431 ilovemilken
ilovemilken's picture

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.

Wed, 06/18/2014 - 14:56 | 4870543 John Law Lives
John Law Lives's picture

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.

Wed, 06/18/2014 - 14:59 | 4870575 aztrader
aztrader's picture

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.........

Wed, 06/18/2014 - 15:07 | 4870597 walküre
walküre's picture

Q1 growth was negative. Q2 growth is negative. Fed is lying.

http://www.zerohedge.com/news/2014-04-30/gdp-shocker-us-economic-growth-...

Wed, 06/18/2014 - 17:09 | 4871123 giggler321
giggler321's picture

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.

 

Wed, 06/18/2014 - 17:49 | 4871217 DullKnife
DullKnife's picture

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

Wed, 06/18/2014 - 18:37 | 4871388 starman
starman's picture

fucking lazy people get to work! the GDP is falling! damn it!

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