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!

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