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Fed Tapers Another $10 Billion, Raises Inflation Concerns, Plosser Dissents - Statement Redline
As expected, The FOMC continued its taper pace at $10bn but what was supposed to be a 'steady as she goes' statement had a few surprises:
- *PLOSSER DISSENTS ON DECISION, CITING GUIDANCE ON RATE OUTLOOK
- *FOMC SEES SIGNIFICANT UNDERUTILIZATION OF LABOR RESOURCES
- *FOMC: ODDS OF PERSISTENT SUB-2% INFLATION `DIMINISHED SOMEWHAT'
More of the same but some modestly hawkish sentiment sneaking in regarding improving labor markets. Oddly - no trade recommendations from Yellen.
Of note, the addition of the following language about labor slack:
... a range of labor market indicators suggests that there remains significant underutilization of labor resources...
Remember when the Fed had a 6.5% unemployment target for "slack"? It appears that the Fed continues to understand that it is not just jobs, part-time agem, but wages that matter. And as we have shown repeatedly, real wages continue to decline.
As for inflation, the language...
"inflation running persistently below its 2 percent objective could pose risks to economic performance, and it is monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term"
... has been struck, and replaced with the following:
Inflation has moved somewhat closer to the Committee's longer-run objective. Longer-term inflation expectations have remained stable... the likelihood of inflation running persistently below 2 percent has diminished somewhat
Plosser objected "to the guidance indicating that it likely will be appropriate to maintain the current target range for the federal funds rate for "a considerable time after the asset purchase program ends," because such language is time dependent and does not reflect the considerable economic progress that has been made toward the Committee's goals."
The conclusion: "The Committee currently judges that there is sufficient underlying strength in the broader economy to support ongoing improvement in labor market conditions."
So... rate hike any second, right?
Market Pre-FOMC: S&P Futs 1961.5, 10Y 2.55%, JPY 102.90, Gold $1294
Full statement redline:
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Hey Yellen......Lick my balls!!
Gold and silver sat still all morning, save for a brief dip and clawback on the the bogus inventory-driven GDP numbers. It's been waiting for the Fed statement since. Now, post-statement:
Live Gold: http://www.pmbull.com/gold-price/
Live Silver: http://www.pmbull.com/silver-price/
At some point, you'd think these games would stop working.
Nobody believes the Fed garbage anyway, so why does everybody wait to "trade" the statement?
The games occur in paper, but I bet physical sales don't spike up and down in the same manner. If anything, they likely do the opposite.
I like the way all of the volatility indexes dropped, because now we REALLY know that everything is safe in the world.
No surprises = we feel safe
I had a girlfriend back in college who told me "we're safe." Boy was I surprised!
interesting that while the Fed has begun it's regular "tapering", the ECB has begun regular monetizing of debt.
Almost like they're trading off with each other so that there really never is any "tapering" going on anywhere....just massive printing between these central banks and lies, lies, lies, lies, lies...
and my guess is that the Fed is not tapering at all. They're only stating that in public while the printing does still go on in secret.
We've been flooding the market with BILLION$$$$ of phony dollars every month for 6 years.
Yellen suspects, maybe, there could be, perhaps, an "inflation" concern !
Belgium will make things right.
QE to infinity and beyond.
Gold's been sitting on the toilet for a few years now.
I like your thinking. Storing gold inside the toilet flushing recticle is a great idea. No one will ever check there and you are saving water for each flush....
"Under-utilization of Labor Resource"
Is all Boris is need know about Amerkan economy... still broken when misallocate/under utilize of resource and perversion of incentive is persistent.
Exactly!!! -- I second whatever Boris just said.
Say "What" again...
yellen's twat has been under-utilized since she was a sexy young brooklyn JAP - ?
It has been used alright, but there is ink all over her crotch. She thinks the toner cartridge goes in there.
"Under-utilization of Labor Resource"
I perceive this as a softly worded demand for moar productivity from and taxation of the working classes.
"Get to work Mr. Sixpack.
Don't forget to skim the worker's paychecks to make up for the Corporations offshoring their profits, Mr. Schumer."
Joe sixpack just became a fivepack and the alcohol content went below 1%
Come on Boris, we are the U.S.S.A. now. Many already "pretending to work" while the government "pretends to pay them"....
Oh the irony....
I love this guy!
disgusting
4% GDP and the Fed spigots are open so wide they make the Sunset Blvd water main burst look like a pimple on a gnats ass
Thats a brave statement have you looked a her. She cant touch mine.
I expect the fiat-Turd to get tapered off enough by October, to get a nasty "Plop"
Fuck! Where are the stock picks! And where the fuck is Hilsenrath's analysis?
CLose your eyes and count to 20. Hilsie will be along momentarily.
You forgot the 'open your mouth' part....
BUY BUY BUY BUY BUY
Close your eyes and open your mouth for me - http://www.reverbnation.com/familyrotten/song/20488934-5-fingers-smore
20? He must be taking a dump or something today. He usually gets his 750 words out before I count to five.
Hilsenrath anal-isis in 3....2...1...
Yeah Hilsey, please tell us all what they really meant!
Edit: market turning back down, NOW we will get the Hilsentake on things
FOMC has made it plainly clear they are doing as told and have zero decision power.
Fed does not need a meeting to increase or reduce QE. That is a daily decision.
FOMC statement is simply a propaganda piece.
Everything is Propoganda .... Absolutely everything at this point, I am just nauseated by the shit I read and hear
The real control of the market is controlling trading computers around the world, which primary dealers and NSA do.
Any rate hike or down or other decision has no effect on anything.
Computers are controlled and overriden.
there is no market
There is only central control
Wow. Are you telling us that the NSA is controlling the markets too? That explains everything
Yes it is, by congress order
http://www.foreignpolicy.com/articles/2014/04/28/exclusive_meet_the_secr...
NSA is controlling the system out of Rutherford, NJ
So based on that information, would you say the market is "rational" or "irrational" ?
There is no market.
Whatever central commands wants, it is going to happen.
Unless somebody else finds faster and better hackers to tamper with the system, like Russians tried few months ago
Financial system has basically become a videogame.
<-- Prepper solution: Pack, stack, rack.
<-- Jimmy Buffet solutions 1 and 2 (1=Margaritaville, 2=Let's all get drunk and...)
Of course there's also the "W" solution: "Stay the course".
In response to... @Thecomingcollapse: "Everything is Propoganda .... Absolutely everything at this point, I am just nauseated by the shit I read and hear"
Correct. When you have reserve currency status, all you do is make money hand over fist and create the perception that your money maintains value. At the expense of the rest of the world of course which is being exploited day after day except for a few who are chosen to participate in the wealth accumulation.
Maybe the BRICS and especially Russia can offer the world an alternative to the USD imperialism. Has to be seen if that alternative is any better but for all intense and purposes, I'm tired of feeding the oligarchs of Wall Street and DC.
The world is de-dollarizing because USA controls trading computers via NSA and Primary Dealers.
Market is dead. Total control.
World is disinterested now and is de-dollarizing
Of course that assumes that the BRICS are for real, and not just another created pseudo 'enemy' or 'rival'. Creating enemies is an old tactic & has been used many times in the past.
Who knows what the truth is
i really hope janet the cow yellen has a massive heart attack and/or a stroke soon.
Hey Belgium, can you spare a brother another 10 billion?
Multiply that by 10 at least
Shouldn't be a problem. They just counterfeit it all anyway.
BUY BUY BUY!
"I don't give a shit what they say, just BUY IT!"
"Oh shit. What'd they say?!?!?! Sell that mutherfu....!" ~ The Chairman
Buy the open
Buy the close
Buy the highs
Buy the lows
You can buy them on a train
You can buy them on a plane
You can even buy them on cocaine!
With long spoos you can't lose!
I feel a GREEN close coming on!
Well, it IS a weekday.
Why QE at all 4% GDP doesn't get better than that. TO THE MOON (Did I mention we lied about that as well)
Blah, blah, blah, (insert BS here), blah, blah, blah.
Yeah, TLDR.
they aint tapering a mother fucking thing...
"Calling Belgium!"
they r trapped and they fucking know it...
bye, bye stawks....
hey...did you know that 840 1964 Silver Kennedy 50 cent pieces with total face value of $420 r actually worth $6,249.67...ha, fucking ha on you mother fuckers...
DEATH TO THE MOENYCHANGERS...
Ok so I guess we can say eveything but the toilet has been thrown at gold, and still we remain steady.
bullish... plosser can pound sand, dumb goy... oh wait, Charles IRVING Plosser.... hmm, unless he's related to David Irving, he "might" be a jew, lol
nothing more than a f****** clown show!
Red or Green close. Seems like a coin toss right now.
as always, stocks go up because it isn't as hawkish as it possibly could have been.
Why'd you tell me this? I don't believe it to be true. They are stealing from us and going to kill us. Let me know when they are in prison so I can celebrate.
There are the two Americas and one is denied, by government lies.
One America regards the new service for the rich who have trouble getting instant reservations at top restaurants for a fee - a tech company will get you in at 7 p.m. Friday night or whenever - as major news because the wealthy are just crowding the top places nationwide and, well, GDP, is rising. At least for these folks.
But the other America, the ignored America - highlighted in a stunning piece from Harper’s August issue on how the forgotten Americans who have no retirement, much of it confiscated by Fed policy - is struggling every day just to eat and live. This America in Ben's and Janet's Fed economy just never seems to make the news.
These people are staring at an awful life, like one older woman having to work long hours walking the concrete floors of an Amazon shipping center, carrying heavy boxes, taking four Ibuprofens in the morning and four at night to deal with the pain… These are the Fed’s forgotten Americans – ambitious people trying to live, and they’ve got no money, such as the former top product manager for McDonald’s..
Wednesday, July 30, 2014
Older Poor Americans and Their Desperate Search For Work | Here and Now
(“Workampers” travel across the country in RVs, often performing seasonal work or even working part-time in huge Amazon warehouses. Listen to today's complete show)
More than 7 million Americans age 65 years and older were still working last year. That’s up 60 percent from a decade ago.
A story in Harper’s Magazine opens a window into some of these people. They’re called “workampers” (a contraction of worker and camper) and they travel across the country in their RVs, often performing seasonal work, selling fireworks, pumpkins, Christmas trees. They even work part-time in huge Amazon warehouses.
Many of these people say they love the work, which they need for the income. But there are obvious downsides. They don’t have health care and they don’t have unions to protect them.
Jessica Bruder is author of the story, “The End Of Retirement: When You Can’t Afford To Stop Working,” in the August issue of Harper’s. She told Here & Now’s Robin Young that this movable work force is a great thing for companies like Amazon.
“It’s actually kind of an employer’s dream,” she said. “They show up with the house. They’re ready to go and they disappear when you don’t need them. They pretty much create these ephemeral company towns.”
http://hereandnow.wbur.org/2014/07/30/older-americans-workamping
Somebody tell that woman she just has to take 2 Aleve for all-day pain relief.
And Belgium will purchase another $10Bil. a month. LOL
I don't believe a word of what they say. No way to positively and independently confirm they're reducing the amount. They'll just do it through other methods/sources. The ability to print without limit, lie, manipulate, and deceive makes EVERYTHING they say untrustworthy.
'Tapering another 10 billion'....oh bullshit, in reality they're probably up to 150 billion a month by now.
no no no sshh shhh..dude.... dude, it's Belgium.
They got all that chocolate cash, dawg. Burnin' a hole, couz!
Fischer's in charge.
Who is like unto the Fischer?
Who can wage war upon it?
That fucking evil inhuman cunt Fischer makes me vomit in disgust.
Since the inflationary cycle of the '70s when we fell off the gold exchange standard we've had at least twenty revisions of how they calculate inflation.They screw pensioners and those who fought wars for them.The Fed and The U.S. Government are thieves and low-life crooks.Stealing from the disabled,low income and grandparents.Do any of these bastards live in a house,drive or eat?That's why they;ve cut back on food stamps because they know she's getting mighty expensive just for a couple to eat even basic meals.That's your Keynesian fiat paper printing in action.
We are becoming Nigerians, in that reduced expectations are both driven by and feeding the fake reduced CPI.
That is the goal cause when we are all 1% criminals and 99% peasants, we are ready for the one world currency
So, is the Federal Reserve going to partner with Monster.com?
I thought the Fed was just supposed to manage the currency, not the labor market. We already have the Department of Labor.
The Fed should be forced to stop loaning the public's money to its member banks at 0% interest. Let those banks go bust. They're insolvent anyway.
Ya know........ kinda feels like a top here for stocks. 4% GDP and a Fed statement that is more hawkish by, at best, a gnat's eyelash....if at all.............and the SP cannot even regain the preivious days high?
Hmmmmmmmmmmm.
The mark-it is just a yo yo for the Fed to play with
Who wants to yank the string today?
It's meaningless beyond that. Even Duncan took a pass.
Isn't that great.....we are "Labor Resources"
We are commodities, like beef, or orange juice.
I expect this is how Yellen and the gang look at us chattle....labor resources.
Hey, maybe one of us at some point will be upgraded to "non-labor resource"
.....I don't want to get my hopes up.
Yeah, why do you think most companies have a "Human Resources" department? To protect the company from liabilities caused by their human resources (employees).
I thought it was to select members of their "TEAM" that are about to die so that they can collect on an insurance policy. In fact we could all take bets on who is going to die next at work....
Why are they tapering? Q2 GDP printed at only 4%! If we'd just ramp things up to 165 bil a month we could take this economy to the moon.
I find it interesting that in this instance, and it seems every FOMC, that the initial algorithmic reaction is opposite of what happens in the next few mins and the rest of the day. What did they "read" to make there be initial selling pressure (that was immediately reveresed in FOMC +2 minutes)? I see this everytime.
I think the mark-it would have gone even higher if Miss Yellen simultaneously made her twat whistle The Doobie Brothers Greatest Hits while releasing the statement
what a fool believes...
That's just wrong dude. I'm trying to eat lunch and that visual just sent my appetite out the window.
Question:
What is the current financial system?
Answer:
The current financial system is a loose network of computers wherein participating players play video games.
No real economy needed.
A very long time, no see Ekm, hope alls well with you and yours mate.
:-)
thx a lot, mate. Humbled.
Likewise for you
*FOMC SEES SIGNIFICANT UNDERUTILIZATION OF LABOR RESOURCES
that's because, yellen, we are in a depression and your gaming of the system by bull ramming any market dips and providing cheap liquidity to banks has done sweet fuck all but defer this mess from unfolding
there are no jobs, there is no growth, your shitbag friends at the BEA can lie and cook numbers all they want, but we have huge inflation to boot - 2% my ass, try 10%
thanks for creating this mess yellen - now you get to watch it fail
An improving economy will cause the market to drop if this causes interest rates to rise. The drop is the sound of air escaping from the bubble.
can someone explain to this non-economist why 2% inflation is accepted as a good and proper thing, so much so that's there's no objection to it as a public goal? i know they need to inflate away the debt, but they obviously can't state that. what's the public rationale? i can't for the life of me understand what's wrong with maintaining the value of the dollar.
The traditional answer is that it leaves room for the Fed to cut when a little stimulus is needed.
Of course that's old school talk, these days they just fire up the printing press.
It may also encourage some "velocity" of money, you can't just tuck it in a mattress, you have to invest it somewhere to get the 2-4% needed to maintain value, and this is considered a good thing.
FWIW
Is the headline trying to suggest that tapering down QE3 can lead to inflation? Huh?
Can someone explain this to me, please?
http://www.thirdworldtraveler.com/Banks/Tragedy_Hope_excerpt.html
Taper my ass!
Hmmm...not surprised at all. What, exactly, happens come October when the alleged taper allegedly ends? Does anyone have access to real data re the FED continued purchase of bonds and T's?
What will the FED do with all the MBSs they "purchased"?
Inflation concerns? Really? What, did some of those braindead motherfucjkers go grocery shopping over the weekend, or maybe had to fill up their own car for a change? They wouldn't know inflation if it jumped up and bit them in the ass. Here is a clue about inflation you braindead morons: it happens when you print trillions of paper dollars. The only reason a loaf of bread doesn't cost $100 is because most of those printed dollars went straight to China. Well, guess what? They're coming back.
A show for YOU where their global partners are paid to attend to keep it going.
What do you think that the likes of Goldman are doing in the creditor nations particularly China...they are really echoing Janet ?