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Futures Unchanged Ahead Of The Fed Announcement

Tyler Durden's picture




 

Ignoring the latest batch of bad news overnight from China (where we learned that home prices fell in half of the cities tracked on a MoM basis while home prices rose in the fewest cities in two years, corroborating reports that the housing market there is softening even as the housing bubble is now shifting to the UK) and of course the ongoing rehypothecation scandal which apparently nobody is allowed to talk about, all it took was a little USDJPY nudge to send the Nikkei nearly 1% higher while algos trading US equity futures are now focused solely on today's 2pm FOMC announcement. The market expects few surprises in terms of policy with another $10bn taper and with rates staying on hold. Given this, eyes have turned towards the other data points the FOMC will provide us with – namely their Summary of Economic Projections (including the now famous dot plots) and the post-meeting Q&A session with Chair Yellen.

There has been growing debate in market’s about the possibility that this data-point heavy June meeting might mark the beginning of a more hawkish sounding Fed. This debate gained some additional firepower yesterday with the above-expectation CPI (2.1% YoY vs 2.0% expected) and core CPI (2.0% YoY vs 1.9% expected) readings. We should note that the dots were likely finalized before yesterday's reading.

To be sure, it is suddenly not fun being a Fed president (or Chairmanwoman) these days: with yesterday's 2.1% CPI print, the YoY rate has now increased for four consecutive months and is above the Fed's target. Concurrently, the unemployment rate has also dipped well below the Fed’s previous 6.5% threshold guidance, in other words the Fed has now met both its mandates as set down previously. There have also been fairly unambiguous comments from the Fed’s Bullard suggesting that this is the closest the Fed has been to fulfilling its mandates in many years. Finally, adding to the "concerns" that the Fed may surprise everyone were BOE Carney’s comments last week that a hike “could happen sooner than the market currently expect."

In short: continued QE here, without a taper acceleration, merely affirms that all the Fed is after is reflating the stock market, and such trivial considerations as employment and inflation are merely secondary to the Fed. Which, of course, we know - all is secondary to the wealth effect, i.e., making the rich, richer. But it is one thing for tinfoil hat sites to expose the truth, it is something else entirely when it is revealed to the entire world.

Elsewhere, a cautious tone is prevailing in Asian EM ahead of today’s events. Bourses in Indonesia (-0.2%), Korea (-0.4%) and China (-0.4%) are trading lower and a number of key EMFX crosses such as USDINR (+0.3%) and USDIDR (+0.8%) are indicating that there is some nervousness about today’s FOMC. The Chinese government released its latest home price data showing that prices fell in half of the cities tracked on a MoM basis. In addition to that, Chinese home prices rose in the fewest cities in two years, corroborating reports that the housing market there is softening. The stronger USD is helping USDJPY today (+0.15%) which is also giving Japanese equities a bid (Nikkei +0.6%).

Outside of Asia, all the recent conjecture about potentially a more hawkish Fed has taken its toll on the emerging markets complex in recent days. The CDX
EM index is down in price for the last 6 days, and the MSCI EM equity index is on a five day losing streak. Certainly the individual domestic themes in the likes of Poland, South Africa and Argentina haven’t helped while the broader Russia and Iraq concerns have only added to the poor sentiment. Overnight, Argentina’s economy minister Kicillof said that it would begin steps to swap restructured bonds into local law in an attempt to make it easier to continue making payments on restructured bonds but avoid the ruling of the US Supreme Court who effectively ruled that it can’t make bond payments until it compensates holdout investors. Kicillof said that the plan has been studied extensively “so that the reconstruction of Argentina isn’t jeopardised” but he also hinted that the country could come to a negotiated settlement with holdouts saying that “we’re not willing to make just any concessions and accept any terms”. Argentinian bonds closed weaker yesterday. Elsewhere in EM, fresh from Kenya’s debut issuance and the strong EM demand seen there, Ecuador has priced its first international bond since its $3.2bn default on foreign debt in 2008. Yesterday’s transaction raised US$2bn of 10yr funds at a yield of 7.95%, which was a fair bit tighter than initial price thoughts somewhere in the low 8% region.

European shares rise though are off intraday highs with the telco and
oil & gas sectors outperforming and media, financial services
underperforming. The Dutch and Spanish markets are the best-performing
larger bourses, French the worst. The euro is little changed against the
dollar. French 10yr bond yields rise; U.K. yields decline.

Commodities
gain, with nickel, gold underperforming and wheat outperforming. U.S.
mortgage applications, Fed QE3 pace, FOMC rate decision, current account
balance due later.

Market Wrap

  • S&P 500 futures little changed at 1933.3
  • Stoxx 600 up 0.1% to 346.9
  • US 10Yr yield down 2bps to 2.64%
  • German 10Yr yield down 1bps to 1.39%
  • MSCI Asia Pacific up 0.1% to 143.6
  • Gold spot down 0.1% to $1269.9/oz

EUROPE

  • 14 out of 19 Stoxx 600 sectors rise; telco, oil & gas outperform, media, financial services underperform
  • 62.2% of Stoxx 600 members gain, 34.5% decline
  • Eurostoxx 50 +0.2%, FTSE 100 +0.4%, CAC 40 +0.1%, DAX +0.2%, IBEX +0.4%, FTSEMIB +0.2%, SMI +0.2%

ASIA

  • Asian stocks little changed with the Nikkei outperforming and the Sensex underperforming.
  • MSCI Asia Pacific up 0.1% to 143.6
  • Nikkei 225 up 0.9%, Hang Seng down 0.1%, Kospi down 0.6%, Shanghai Composite down 0.5%, ASX down 0.3%, Sensex down 1.3%
  • 7 out of 10 sectors rise with materials, industrials outperforming and energy, staples underperforming

Bulletin headline summary from RanSquawk and Bloomberg

Treasury yields lower overnight after short-end yields sold off yesterday following a stronger than expected CPI report raised concerns that FOMC meeting will show a more hawkish stance.

BoE policy makers said a rate increase this year may be more likely than investors anticipate as the debate on the timing of the first policy tightening in seven years heats up

The green shoots of inflation are coming at about the worst time for corporate-bond investors as duration is approaching the record high reached last year

The global economy faces a new threat as a spike in the price of crude foreshadowed economic slumps in each of the last four decades; economists are worrying after Brent touched its highest price in nine months

Argentina will seek to move its overseas bonds into local jurisdiction to skirt a U.S. court ruling forcing it to pay holders of defaulted debt in full

Iraqi Prime Minister al-Maliki fired at least four senior military commanders after the collapse of his northern command last week, as his remaining troops engaged Islamist militants north of Baghdad

Ukraine said it will call a unilateral cease-fire in days after three months of clashes with pro-Russian separatists rocked its easternmost regions

Sovereign yields mixed. EU peripheral spreads mixed with Greece 10Y ~7bps lower, Portugal’s ~4bps higher. Asian     equities mixed; European equity markets,  U.S. stock futures higher. WTI crude, copper higher, gold steady.

US Event Calendar

  • 7:00am: MBA Mortgage Applications, June 13 (prior 10.3%)
  • 8:30am: Current Account Balance, 1Q, est. -$97b (prior - $81.1b)
    2:00pm: Fed seen lowering QE purchases by $10b to $35b, maintaining benchmark interest rate target in 0%-0.25% range
  • 2:30pm: Fed’s Yellen holds news conference

FIXED INCOME

Apart from digest the release of the most recent BoE meeting minutes, there was little for market participants to contend with. The minutes revealed that the MPC voted 9-0 to keep rates unchanged and despite noting that the low probability markets puts on 2014 rate hike is surprising, refrained from adjusting slack estimates. As a result, Gilts surged higher, dragging Bunds into positive territory. Focus going forward will be firmly on FOMC rate decision and accompanying press conference.

EQUITIES

Despite the looming risk event (FOMC), stocks in Europe are seen broadly higher (Eurostoxx 50, +0.23%), benefiting from somewhat dovish BoE minutes. On the sector breakdown, telecommunications outperformed, benefiting from reports that Amazon said in talks to determine who will be the European provider for its new smartphone with O2 and Vodafone (+1.4%) in contention

FX

Muted price action was observed overnight in Asia and in Europe this morning until the release of the BoE minutes which were interpreted as more dovish following hawkish comments by Carney last week. The minutes also noted that the low probability markets puts on 2014 rate hike is surprising. Following initial bout of volatility, GBP lost ground vs. EUR and the USD.

COMMODITIES

WTI crude futures recovered off overnight lows and moved into positive territory following reports that Iraq's Baiji refinery tank caught fire after being shelled, according to Iraqi police.

API Crude Oil Inventories (June 13) W/W -5700k vs. Prev. 1500k

Safe-haven related flow which saw spot gold recover off overnight lows amid reports that ISIS militants are in control Iraq Baiji refinery was short-lived, with prices soon reversing and moving lower, with the focus firmly on the FOMC decision. Latest press reports indicate that Iraqi military have blocked an attempt to control the Baiji refinery.

In terms of metal related news, the physical gold premiums in India have plunged to nine-month lows and gold holdings in the SPDR Gold Trust decreased 0.26 metric tons to 782.62 metric tons. (RTRS/BBG/metal.com)

* * *

Concluding the overnight recap is DB's Jim Reid

The next hurdle for the market is tonight's conclusions from the latest two-day FOMC meeting. The market is expecting few surprises in terms of policy with another $10bn taper and with rates staying on hold. Given this, eyes have turned towards the other data points the FOMC will provide us with – namely their Summary of Economic Projections (including the now famous dot plots) and the post-meeting Q&A session with Chair Yellen. Given the past quarters bounce back in some US economic statistics after Q1’s bad weather there has been growing debate in market’s about the possibility that this data-point heavy June meeting might mark the beginning of a more hawkish sounding Fed. This debate gained some additional firepower yesterday with the above-expectation CPI (2.1% YoY vs 2.0% expected) and core CPI (2.0% YoY vs 1.9% expected) readings. We should note that the dots were likely finalised before yesterday's reading.

Nevertheless in a note yesterday DB’s Joe LaVorgna argued that US inflation is in the midst of a cyclical uplift pushed along by the Fed’s asset purchases, an uplift which is only likely to build as the US unemployment rate (currently at 6.3%) continues to approach its long-term average of 6.1%. In spite of this DB’s Peter Hooper thinks it is much too early to expect the Fed to turn more hawkish today. On the macro front he points to the still too high unemployment rate, generally too low inflation rate (including the preferred PCE measure), signals from the housing sector which remain mixed at best (see yesterday’s disappointing housing data including a May -6.5% MoM Housing starts reading vs -3.9% expected) and business investment which still shows little evidence of a self-sustaining recovery. On a slightly more technical note Peter also highlights that the June meeting will see three new members of the Committee voting, all of whom are likely to be supportive of Yellen’s policies at this point in time. Given these factors Peter thinks the Fed will be happy if today’s statement and press conference prove uneventful for markets. We'd agree with Peter that tonight is unlikely to see much boat rocking from Yellen and her fellow committee members.

One can understand the nerves ahead of the FOMC though. Back to CPI, the YoY rate has now increased for four consecutive months and unemployment has dipped well below the Fed’s previous 6.5% threshold guidance, so there is some basis for the divergent views this month. There have also been fairly unambiguous comments from the Fed’s Bullard suggesting that this is the closest the Fed has been to fulfilling its mandates in many years. Nevertheless we can’t help but wonder if this month’s FOMC would be as keenly anticipated were it not for Governor Carney’s “could happen sooner than the market currently expects” comments last week. Certainly yesterday’s CPI numbers gives pause for thought, but the Fed’s preferred inflation measure, PCE Core, was still a fair way below the target at 1.4% YoY in April. In terms of the bond market reaction yesterday, the shorter end held in relatively better with 2 years trading up 1.2bp in yield while the longer end underperformed in comparison (10yr +5.5bp). Notably, there wasn’t any meaningful retracement in yields yesterday and the USTs finished the day at close to its weakest level. Also an interesting reaction in equities, with S&P 500 futures dropping almost half a percent following the inflation and housing data, before quickly retracing those losses that saw the S&P 500 close 0.22% higher. Cyclicals outperformed on the day with financials (+0.93%), consumer discretionary (+0.3%) and IT (+0.2%) enjoying the best of the gains.

A cautious tone is prevailing in Asian EM ahead of today’s events. Bourses in Indonesia (-0.2%), Korea (-0.4%) and China (-0.4%) are trading lower and a number of key EMFX crosses such as USDINR (+0.3%) and USDIDR (+0.8%) are indicating that there is some nervousness about today’s FOMC. The Chinese government released its latest home price data showing that prices fell in half of the cities tracked on a MoM basis. In addition to that, Chinese home prices rose in the fewest cities in two years, corroborating reports that the housing market there is softening. The stronger USD is helping USDJPY today (+0.15%) which is also giving Japanese equities a bid (Nikkei +0.6%).

Outside of Asia, all the recent conjecture about potentially a more hawkish Fed has taken its toll on the emerging markets complex in recent days. The CDX
EM index is down in price for the last 6 days, and the MSCI EM equity index is on a five day losing streak. Certainly the individual domestic themes in the likes of Poland, South Africa and Argentina haven’t helped while the broader Russia and Iraq concerns have only added to the poor sentiment. Overnight, Argentina’s economy minister Kicillof said that it would begin steps to swap restructured bonds into local law in an attempt to make it easier to continue making payments on restructured bonds but avoid the ruling of the US Supreme Court who effectively ruled that it can’t make bond payments until it compensates holdout investors. Kicillof said that the plan has been studied extensively “so that the reconstruction of Argentina isn’t jeopardised” but he also hinted that the country could come to a negotiated settlement with holdouts saying that “we’re not willing to make just any concessions and accept any terms”. Argentinian bonds closed weaker yesterday. Elsewhere in EM, fresh from Kenya’s debut issuance and the strong EM demand seen there, Ecuador has priced its first international bond since its $3.2bn default on foreign debt in 2008. Yesterday’s transaction raised US$2bn of 10yr funds at a yield of 7.95%, which was a fair bit tighter than initial price thoughts somewhere in the low 8% region.

Looking at the day ahead, the Bank of England publishes the minutes from its June 5th MPC. Following the surprising comments from Carney last week, these minutes will be more closely watched than previous months. In EM, updates on Russian industrial production, South African CPI and Brazilian inflation are expected today. There will be a quarterly earnings announcement from FEDEX. Interestingly, Ben Bernanke speaks at the Federation of European Securities Exchanges in Zurich today, about 15 minutes before the FOMC policy statement. But clearly the main event today is the FOMC policy announcement due at 7pm London time, followed by Yellen’s presser half an hour later.

 

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Wed, 06/18/2014 - 07:11 | 4868341 Space Animatoltipap
Space Animatoltipap's picture

Stagflation is the name of the game. 

Wed, 06/18/2014 - 07:15 | 4868350 Sudden Debt
Sudden Debt's picture

MOB GDP is the last resort...

and that's when you know the game is over.

Wed, 06/18/2014 - 09:39 | 4868826 Comte d'herblay
Comte d'herblay's picture

Nailed it!  Sports guy chestbump!

Wed, 06/18/2014 - 07:13 | 4868345 Sudden Debt
Sudden Debt's picture

reflating the stock market?

 

aren't we way above all time highs already?

And what I'm hearing in the industry... my god save us all...

A drop of 8,2% in industrial output. Hookers and blow not included.

Wed, 06/18/2014 - 07:40 | 4868392 MeMongo
MeMongo's picture

Ah yalzz is a buncha kooks!

Sarc/

That's Mongo's diaclaimer for the good gubermint men:-)

Wed, 06/18/2014 - 07:14 | 4868347 Devotional
Devotional's picture

I have green shoots too .... and I am going to smoke them

bitchez 

Wed, 06/18/2014 - 07:24 | 4868363 Stoploss
Stoploss's picture

Weekly mortgage apps DOWN  - 9.2%.....................................

 

Go ahead, raise rates..

Wed, 06/18/2014 - 07:40 | 4868391 Space Animatoltipap
Space Animatoltipap's picture

Also nice for the government in paying huge interest on their huge debt. Instant byebye ponzi scheme ...

Wed, 06/18/2014 - 07:14 | 4868348 firstdivision
firstdivision's picture

So when does the audit begin on the gold vaults vs outstanding warrants?

Wed, 06/18/2014 - 07:19 | 4868357 Sudden Debt
Sudden Debt's picture

After the raid on the white house and the hanging of the traitor potus in chief

Wed, 06/18/2014 - 07:54 | 4868415 negative rates
negative rates's picture

You didn't make that gold you turkey, that's for those people.

Wed, 06/18/2014 - 07:15 | 4868349 slaughterer
slaughterer's picture

Whether bearish or bullish, FOMC will fuel rally to ES 2000 by EOQ. 

Wed, 06/18/2014 - 07:17 | 4868355 fonzannoon
fonzannoon's picture

So what happens when they accelerate the taper and the market holds up just fine? How about when they end QE and the market does not crack? What if they actually raise rates and the market just keeps plugging along?

Wed, 06/18/2014 - 07:22 | 4868360 Devotional
Devotional's picture

then we were all wrong and will have to admit defeat.

Wed, 06/18/2014 - 07:33 | 4868378 Tasty Sandwich
Tasty Sandwich's picture

How much longer can this go on?

I never thought it could or would last this long.

Assuming reincarnation, I'm taking the blue pill next time.  Double dose.

Wed, 06/18/2014 - 07:49 | 4868401 Ghordius
Ghordius's picture

you know what the members of the Roman Pontifexes College thought about the technology of bridges? that they were slightly against the natural order, a temporary measure and basically a ponzi scheme

it has to do with the big holes they have. which is a kind of leverage, making the whole structure more risky than plain dams

nevertheless, they found them necessary (pontifex means builder of bridges, or regulator of bridges) and allowed them to be built under strict supervision

in the case of one of them, they refused to pay. too radical. too risky. all in all, they were right, that bridge in Rome is destined to fall, some day

though it still supports heavy traffic, and this after more than twenty centuries. just saying

Wed, 06/18/2014 - 07:33 | 4868379 greatbeard
greatbeard's picture

>> will have to admit defeat.

Take it from a gold bug, it ain't so bad.  Lick yer wounds and go on living.

Wed, 06/18/2014 - 07:29 | 4868361 PlausibleDenial
PlausibleDenial's picture

@ Fonz Did you forget the sarc tag?  I will note your optimism.

Wed, 06/18/2014 - 07:37 | 4868384 NoDebt
NoDebt's picture

I don't think he's joking this time.

Wed, 06/18/2014 - 07:52 | 4868412 fonzannoon
fonzannoon's picture

i don't think the fed can normalize rates. i think we saw that as we creep towards 3.25% on the 10yr things start going boom. However with that said for anyone on here who understands the "stock vs flow" debate, it is being proven that stock matters more than flow. The basis of ZH has always been that it was flow that mattered. Hence QE4eva. So we are watching this debate get settled.

The fed can't get velocity going. They need fiscal policy to do that. I keep expecting a reverse "get to work mr. bernanke" moment to happen where the fed tells Schumer to start handing out some goodies. Someone I speak to offline makes a good case for some sort of minimum income to be handed out and offset by a vat tax to keep things in check. i don't know if it would work or  not. as of now americans are still convinced they are too ford tough to accept free shit even as the 1% are probably willing to hand it out because they know how ridiculous the inequality has gotten. but instead everyone just keeps demanding that someone create more useless jobs so everyone can go check facefart all day but say they are contributing.

Wed, 06/18/2014 - 08:27 | 4868487 ParkAveFlasher
ParkAveFlasher's picture

Stock vs flow, that's a debate?  In a virtuous cycle, stock shouldn't "matter", in fact that defines virtue.  Forgive me, I work in the real world with real things.  Stock buildup implies no demand, implies misallocation.

Wed, 06/18/2014 - 08:38 | 4868533 fonzannoon
fonzannoon's picture

It's the fundamental basis ZH has built itself on.

Wed, 06/18/2014 - 09:56 | 4868900 ParkAveFlasher
ParkAveFlasher's picture

This whole chain of thought is lost to semantics.  What does "matter" mean?  If you have no flow, only stock, for lack of flow signifying stagnation, of course stock "matters", it indicates lack of flow.  Again, what are we debating?  The ZH thesis would be no less true.  Stock and flow are in the same circle.  One is a transient form / transformation of the other, or should be.

Wed, 06/18/2014 - 11:09 | 4869301 fonzannoon
fonzannoon's picture

The idea that the fed has gained enough control of the market to stave off an actual market ever manifesting itself and whether they need perpetual QE. 

I'm not trying to debate it really, just put forth the idea that it's not only possible, at this point it's probable.

Wed, 06/18/2014 - 08:27 | 4868489 Awakened Sheeple
Awakened Sheeple's picture

I think what we're realizing is that stock does matter so long as CBs own everything and aren't selling.

Wed, 06/18/2014 - 08:31 | 4868507 fonzannoon
fonzannoon's picture

Yeah pretty much, or they own at least enough to keep control of things and leave enough left over to create a semblance of a market. 

Wed, 06/18/2014 - 07:24 | 4868364 BandGap
BandGap's picture

The wobble is accelerating. And as far as I can see, it isn't what happens it's who you can blame to cover the fact that you are robbing people blind.

Just let go, an event or events will happen. They/it won't be seen until thye have passed or it is too late anyway. Just keep on keeping on.

Wed, 06/18/2014 - 07:31 | 4868375 Hughing
Hughing's picture

I don't expect the rigged market to collapse: that would defeat the purpose of rigging the market. The big banks know what the Fed 's plan are. The question is how will the Keynesian aholes pump credit up without buying Visa debt.. The CB's will NEVER deflate.

Wed, 06/18/2014 - 07:33 | 4868376 NoDebt
NoDebt's picture

It means we will have finally arrived at a world without consequences.  We'll be wrong, Paul Krugman will be wrong, everyone will be wrong.  Because nothing will matter any more.

I'm getting more comfortable with that every passing day.

P.S.- look at the buzz you started with that question at 7:30 in the morning.

Wed, 06/18/2014 - 07:40 | 4868390 wmbz
wmbz's picture

Since they won't allow an outside audit, they can say what ever they want. You just can't know what they are doing. In other words...the pump will keep running!

Wed, 06/18/2014 - 07:43 | 4868400 Tall Tom
Tall Tom's picture

Then we will know that the market is driven by price inflation over that of any real growth?

 

However for shits, giggles and grins...

 

Remove QE altogether immediately and RAISE THE INTEREST RATES. 

 

(It is still just a stealth QE driven by a buyer in Belgium...but for the deluded's sake...)

 

If the economy is in true recovery then we do not need QE and we need to raise the Interest Rates while the timing is good.

 

But both you and I know, Fonz, that everything is kabuki theater and that the robust numbers are BULLSHIT.

 

Pass the popcorn.

Wed, 06/18/2014 - 07:58 | 4868416 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

I suspect that the market will keep going up....in this low flow/volume environment, it doesn't need much priming. In fact once the markets realize that there isn't a panic, it will rally on the euphoria of not panicking. 

Wed, 06/18/2014 - 08:10 | 4868441 fonzannoon
fonzannoon's picture

Very possible outcome

Wed, 06/18/2014 - 07:16 | 4868353 no more banksters
no more banksters's picture

US debt held by the Federal Reserve at the end of 2013: A new record high!

Banksters “print” more money than ever!

http://failedevolution.blogspot.gr/2014/06/us-debt-held-by-federal-reser...

Wed, 06/18/2014 - 07:18 | 4868356 i_call_you_my_base
i_call_you_my_base's picture

Whatever they do, the algos will jack up the market to indicate that what they do is positive. Hawkishness will be cited as evidence of a recovery, dovishness will push the liquidity-risk-on meme. Have to keep confidence up at all costs, despite any evidence or rational thought.

Wed, 06/18/2014 - 07:24 | 4868359 Wait What
Wait What's picture

"it is one thing for tinfoil hat sites to expose the truth, it is something else entirely when it is revealed to the entire world"

i'll take tin-foil-hat-wearing-conspiracy-theorist over unicorns-and-rainbows-are-just-around-the-corner any day. just because the Fed can inflate every asset in the world doesn't mean it can fix the economy. now that the Fed has painted itself into a corner it looks like we're going to find this out the hard way.

Wed, 06/18/2014 - 07:39 | 4868374 RaceToTheBottom
RaceToTheBottom's picture

When does the FED ShamWOW get introduced?  

It can soak up Trillions in Liquidity.

The Germans built it so they could get their gold back....

The Germans always build such neat stuff.

Wed, 06/18/2014 - 07:34 | 4868380 Baby Eating Dingo22
Baby Eating Dingo22's picture

They've already reflated

Now they're going for Hindenflate, or is that Hilsenflate?

Wed, 06/18/2014 - 07:42 | 4868396 Eyeroller
Eyeroller's picture

Lame stream press all have headlines about "beware hawkish fed".

Complete set up for a rally when the Ponzi Munchkin gives her dove-speak.

 

Wed, 06/18/2014 - 07:43 | 4868397 craus
craus's picture

ISIS capture Baiji and the largest Iraq oil refinery near Baiji is on fire. Oil could go as high as $200 per barrel.

But Yellen speaks today so expect the markets to continue their quest for the moon. Be positioned accordingly.

Wed, 06/18/2014 - 07:45 | 4868403 yogibear
yogibear's picture

Where's the beef?

Beef prices hit U.S. record and are still rising.

http://www.stltoday.com/business/local/beef-prices-hit-u-s-record-and-ar...

CPI: Airline fares spike in May, largest hike since 1999
http://www.usatoday.com/story/money/business/2014/06/17/consumer-price-i...

The Federal Reserve has triggered the start of the huge stagflation they wanted.

Maybe gasoline sticks to $5/gal this time with all the printing.

Wed, 06/18/2014 - 07:48 | 4868405 XRAYD
XRAYD's picture

The Fed got on the tiger ... and now is terrified of getting off!  The norm when one does the wrong thing for too long because they believe in their own mythical powers!

Wed, 06/18/2014 - 07:52 | 4868409 wmbz
wmbz's picture

" Under my plan, your energy rates will necessarily skyrocket"

~ Dictator Obozo - A-Hole In Chief

Wed, 06/18/2014 - 08:26 | 4868481 asking4it2k
asking4it2k's picture

If the FED didn't print money all of our dollars and purchasing power would be overseas due to the huge trade deficits we have with other countries.

The USA is bleeding dollars via trade deficits, so the FED is trying to increase the blood supply to keep the patient alive with QE.

Wed, 06/18/2014 - 08:37 | 4868532 NoWayJose
NoWayJose's picture

Today we learn if the Fed actually trusts the numbers the government keeps making up.

Wed, 06/18/2014 - 09:39 | 4868822 Comte d'herblay
Comte d'herblay's picture

Shocked at the sophisticated bloggers here who buy into shit like the J Yell is not having fun, or is terrified.

Come ON, fellow FED bashers!

The J Yell could care less about anything that does not relate to the continual flow of FRNs, over a trillion so far as a conservative guess, to her Jewish relatives on Wall Street and their Gentile accomplices, aiders and abettors in London Central District and Singapore. 

The time for her/him/it to be a teensy concerned is when Lord Blankfein says, "It's not enough, I need more.  NOW"!

Otherwise, being the most powerful woman/man/transgendered single person on Earth, Mars, Venus, and HerAnus, she is enjoying life more than a 5 yr. Castaway on a deserted island, discovered by a dozen sex starved Amazonian She-Wolves.  

Puhleez, stop using old pair o dimes to assess what a FED is feeling.

It's antediluvian, as prehensile as our tails. 

 

Wed, 06/18/2014 - 10:27 | 4869023 ilovemilken
ilovemilken's picture

The market will rally regardless of what the FED announces.  If they keep asset purchases/rates the same then the market will rally with more easy money available for the rich.  If the FED pulls back asset purchases then that will be viewed as the economy is improving. Either way we will close in the green today.

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