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FOMC Talks Down Dollar, Fears Growth Slowdown, "Considerable Time" Misunderstood
With the S&P down over 3% from September's FOMC statement, the market needed some 'good' news from the Fed minutes to save the 'wealth' that has been created...
- *FED OFFICIALS SAW GLOBAL SLOWDOWN AMONG RISKS TO U.S. OUTLOOK (growth)
- *FOMC SAID SOME DEVELOPMENTS COULD UNDERMINE FINANCIAL STABILITY (bubbles)
- *FED SAW RISING DOLLAR AS RISK TO EXPORTS, GROWTH, MINUTES SHOW (jawbone USD)
So The Fed fears bubbles, fears growth slowing down, and appears to be talking down the dollar. In other word, dovish minutes confirming the dovish statement was indeed dovish.
Pre-FOMC Minutes: S&P Futs 1936.50, 10Y 2.38%, USDJPY 108.75, Gold $1206
The last FOMC Statement and Minutes day performance...
Some of the key sections: on bubble fears:
Bankers in one District stated that, while they had eased the terms and conditions on loans in response to competition from other lenders, they had not taken on riskier loans. Some financial developments that could undermine financial stability over time were noted, including a deterioration in leveraged lending standards, stretched stock market valuations, and compressed risk spreads.
Fears about the dollar:
Over the intermeeting period, the foreign exchange value of the dollar had appreciated, particularly against the euro, the yen, and the pound sterling. Some participants expressed concern that the persistent shortfall of economic growth and inflation in the euro area could lead to a further appreciation of the dollar and have adverse effects on the U.S. external sector. Several participants added that slower economic growth in China or Japan or unanticipated events in the Middle East or Ukraine might pose a similar risk. At the same time, a couple of participants pointed out that the appreciation of the dollar might also tend to slow the gradual increase in inflation toward the FOMC’s 2 percent goal.
On forward guidance, and the need to not change it:
In addition, some participants saw the current forward guidance as appropriate in light of risk-management considerations, which suggested that it would be prudent to err on the side of patience while awaiting further evidence of sustained progress toward the Committee’s goals. In their view, the costs of downside shocks to the economy would be larger than those of upside shocks because, in current circumstances, it would be less problematic to remove accommodation quickly, if doing so becomes necessary, than to add accommodation. A number of participants also noted that changes to the forward guidance might be misinterpreted as a signal of a fundamental shift in the stance of policy that could result in an unintended tightening of financial conditions.
On the evolution of forward guidance, which confirms that the Fed once again has no idea what is going on:
Participants also discussed how the forward-guidance language might evolve once the Committee decides that the current formulation no longer appropriately conveys its intentions about the future stance of policy. Most participants indicated a preference for clarifying the dependence of the current forward guidance on economic data and the Committee’s assessment of progress toward its objectives of maximum employment and 2 percent inflation. A clarification along these lines was seen as likely to improve the public’s understanding of the Committee’s reaction function while allowing the Committee to retain flexibility to respond appropriately to changes in the economic outlook. One participant favored using a numerical threshold based on the inflation outlook as a form of forward guidance. A few participants, however, noted the difficulties associated with expressing forward guidance in terms of numerical thresholds for some set of economic variables. Another participant indicated a preference for reducing reliance on explicit forward guidance in the statement and conveying instead guidance regarding the future stance of monetary policy through other mechanisms, including the SEP. It was noted that providing explicit forward guidance regarding the future path of the federal funds rate might become less important once a highly accommodative stance of policy is no longer appropriate and the process of policy normalization is well under way.
The full minutes (link)
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Read "Fed doomsday book" post.
Fed statements are just propaganda.
Fuck that bald cunt steve lies-man
Perpetual defender of the fucking FED
Has anyone looked at P/E ratios?
FARCE!
Stockman says REPORTED EARNINGS P/E is 20
Funny how these parsites speak as if they are working for our best interest?
News Flash for the bankers, many more each day are figuring out just where these magical clownbux come from that you are loaning us.
And the end will not be pretty.
pods
This makes a lot of sense. Lets move the market based on what a bunch ivory tower idiots were thinking weeks ago.
Again.
There is no market.
There are only computers which are tampered with
Fake markets, fake recoveries, fake democracies...
"The longest serving veteran of Brussels deal-making, until last year Jean-Claude Juncker headed the powerful Eurogroup meetings of eurozone finance ministers firefighting the crisis in the EU’s single currency - an institution he had helped create, warts and all in the Nineties.
"We decide on something, leave it lying around and wait and see what happens. If no one kicks up a fuss, because most people don't understand what has been decided, we continue step by step until there is no turning back," he said of the euro's introduction.
Germany's Suddeutsche Zeitung accused Mr Juncker of “taking the lead on the deception” and warned he had managed “to fritter away the last remaining trust the people of Europe still have”.
Mr Juncker has never hidden his view that the compromises and deals being worked out in EU meetings or leaders or ministers need be protected from public scrutiny, by lies if necessary.
"When it becomes serious, you have to lie," he said.
In May 2011, he told a meeting of the federalist European Movement that he often “had to lie” and that eurozone monetary policy should be discussed in “secret, dark debates”.
He also sparked controversy by suggesting that the eurozone economic policy was incompatible with democracy. “We all know what to do, we just don't know how to get re-elected after we've done it,” Mr Juncker cynically quipped last year.
Mr Juncker went on to play a leading role in the resurrection of the EU constitution in the form of the Lisbon Treaty and advised Gordon Brown, then Prime Minister, to mislead the British public over "transfers of sovereignty".
“Of course there will be transfers of sovereignty. But would I be intelligent to draw the attention of public opinion to this fact?,” he said of Mr Brown and British calls for a referendum on the Lisbon Treaty.
http://www.telegraph.co.uk/news/worldnews/europe/eu/10874230/Jean-Claude...
This BUNCH OF ASSHOLES has the lives of millions IN A HEADLOCK
It is quite impressive how far they get just by flapping their gums.
The interest rate threat has done wonders for the dollar.
Next, with stocks crumbling, QE threats.
If only you could make a living doing what these bozos do.
CIA by definition engages is covert operations.
So, does the Fed
As usual, the machine driven pops and drops or drops and pops commence:
Live Gold: http://www.pmbull.com/gold-price/
Live Silver: http://www.pmbull.com/silver-price/
Looks like a pop this time around.
UP UP AND AWAY!!!!
AS EXPECTED.
Good for a one day pop. Then short again.
fucking stupid...look at the Fraud Markets go...
mom and pop took their lunch break early at McDonalds just so they get in on this economic miracle called the USA...
FUCK OFF...
ps:nice job on the phony paper markets of Gold and Silver today too...
And somehow the US wins again. US is 60% of global market cap and they barely make anything, have run historic trade deficits for decades. What a fuckin joke.
PMs vertical now.
NO its US stocks that are vertical. PMs barely a bump in the basement, fading already. They have total control, everything continues to go the way of the kleptocrats.
Time for Project Maheim
Fed prints and manipulates. When the printer is off (October 28) and assuming that yellen isn't lying, the Fed is like a person with no arms and no legs floating in the middle of a lake - we'll call him Bob.
"Measures of labor compensation increased a little faster than consumer prices. Compensation per hour in the business sector rose 2-3/4 percent over the year ending in the second quarter; with modest gains in labor productivity, unit labor costs advanced more slowly than compensation per hour. Over the same year-long period, the employment cost index rose only about 2 percent, and average hourly earnings increased at a similar rate over the 12 months ending in August."
yeah, real wage growth accelerating ... but i'm sure zandi privy to better data than the FR
Odds of Yellen raising interest rates during her term as FED chair: 42500-1
Odds of Yellen raising interest rates during her term as FED chair: 42500-1
Thank Janet we are saved!!!
And from Eccles rang down a voice, rolling like thunder, "this is my beloved bull market, listen to it."
dollar aint worth shit
Are stocks still plunging? Holy shit... oh wait.
"However, other participants said they heard mixed reports from business contacts regarding consumer spending or were uncertain about the prospects for stronger gains in real income necessary to sustain moderate growth in household spending."
..
more evidence contrary to zandi
what a fucking shit show.
its like they pressed the algo button to just buy every fucking thing.
in fucking credible what type of fraud thee banksters get away with day in and day out
They are just never satisfied, the depravity of it all never ceases to amaze.
Take that you proles. We can't have your FRNs actually be worth something.
Poor shorts
They lowered the interest rate? Printed another 15 trillion? Yelled at it to go down?
UPS guy: "Need a signature here. Another big delivery of Dove Bars for the Eccles Building ..."
Risk the ridicule- talk to everyone you know that the federal reserve and the federal government do not serve them. Take your money from the banks and the markets. Until a critical mass is reached it will be the same old shit. Nothing will be done until the WalMart crowd awakens. People will turn away- people don't want to know- tell them anyhow. Talk to all- risk the ridicule.
"FOMC SAID SOME DEVELOPMENTS COULD UNDERMINE FINANCIAL STABILITY"
Those being QE 1, 2, 3.
After the jobs report last week.
So Yamada and Hilsenrath threaten gold last week with interest rate hikes. Gotta be a reason.
"""In their view, the costs of downside shocks to the economy would be larger than those of upside shocks because, in current circumstances, it would be less problematic to remove accommodation quickly, if doing so becomes necessary, than to add accommodation."""
In other words 'if inflation takes hold or the dollar rapidly looses purchasing power, we have control of it' I think they are a bunch of idiots and could never remove accommodation.
This will end with a lot of crying.
err on the side of inflation sounds good to me. print! baby! print!