FOMC Ends The QE Dream, Keeps "Considerable" Period Hopes Alive - Full Statement Redline

Tyler Durden's picture

"Steady as she goes" was expected... having kept the "considerable time" dream alive last month, the FOMC ended QE3 on schedule but remained 'data-dependent' on reviving it...

  • *FED ENDS THIRD ROUND OF QUANTITATIVE EASING AS PLANNED
  • *FED SEES `SOLID JOB GAINS' WITH LOWER UNEMPLOYMENT
  • *FED: UNDERUTILIZATION OF LABOR RESOURCES GRADUALLY DIMINISHING
  • *FED REPEATS RATES TO STAY LOW FOR `CONSIDERABLE TIME'
  • *FED REPEATS RISK OF BELOW-TARGET INFLATION DIMINISHED SOMEWHAT
  • *FED SAYS LOWER ENERGY PRICES TO HOLD DOWN INFLATION NEAR TERM
  • *KOCHERLAKOTA DISSENTS AT FOMC, SEEKING QE CONTINUATION

And so now the "flow" has stopped; given that "bond buying" did not work, we are reminded of Alan Greenspan's warning that  "I don’t think it’s possible" for the Fed to end its easy-money policies in a trouble-free manner.

Here is how the Fed pretends it has rarely been more optimistic about the economy:

The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program. Moreover, the Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability. Accordingly, the Committee decided to conclude its asset purchase program this month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.

Pre-FOMC: S&P Futs 1975, 10Y 2.32%, Gold $1225, WTI $82.75

 

 

What next? Is it the 'stock' or the 'flow'?

 

A reminder of what happened at the last FOMC...

 

Full Redline below 

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FuzzyDunlop21's picture

Is it just me or does Janet Yellen look like one of those women who liked to get nailed by a black guy while her husband watches and jacks off in the corner? Cant you just see her spread eagle while Barack Obama just plows right through her while chanting one liners like "GM is saved!" "You didnt build that!"? But not even Obama can satiate her, so she calls in for air support. Ben Bernanke comes flying in on a chopper, enters the building by smashing through a window (good for GDP), and then stands at the foot of the bed, saying "we will not allow inflation to rise above 2 percent." He unzips his trosures, takes out his cock which has been surgically replaced with two wads of 100 dollar bills stacked end on end.  Janet looks down, is pleased, then sees his balls, which have been replaced by money bags with dollar signs on them, filled with fiat. She squeals with delight. Ben begins piledriving her caveman style. Janet  starts getting antsy after a few minutes though. Turns out shes late for a Banker Wanker convention, where shes giving the keynote address. So she tries to get Ben to hurry and finish. She turns on some porn. Its a video of Bill Dudley shitting on the grave of FA Hayek. This does it: Ben shouts out in ecstacy "subprime is contained!" and a bunch of dimes and nickels shoot out from his money schlong, all over Janet's flabby cottage cheese body. Its a literal moneyshot. Obama cleans up.

Anyone else see this?

viahj's picture

the question from the very beginning is how would the Fed unwind their balance sheet?  Belgium?

TruthInSunshine's picture

BernYellen ends QE, Super Mario to start it.

Troll Magnet's picture

Why do UNELECTED JEWS get to ru(i)n the world economy?

Headbanger's picture

Translation:  YOU'RE ON YER OWN MOOKS!

sixsigma cygnusatratus's picture

Maybe Belgium will step in and save us all.

ZerOhead's picture

Belgium took too much heat last time.

They are going to have to spread the buys all around the planet as Covert QE gets under way.

Divided States of America's picture

Troll Magnet

Honestly I havent trusted a Jew in high position for a while (Bernanke, Greenspan and most of the FOMC members, Frieden, Nuland, Krugman) and Yellen is no better. I hope the sheeps will wake up and realize this. Its time to take back our country from dual-citizens who could care less about us.

Troll Magnet's picture

Hear, hear!

They're fucking traitors and terrorists, liars and thieves, cancerous criminals.  Fuck Israel. 

MillionDollarBonus_'s picture

The recovery is unshakable. Stocks are on the path to recovering all of the recent losses. As Warren Buffet says, buy when there is blood in the water. The recent correction in stocks may be the final opportunity for late comers to ride this market into the new golden age of prosperity and opportunity.

SilverIsKing's picture

The guy makes me want to buy a used car from a used car salesman.

Is it blood in the water or blood in the streets?

I guess the blood can run off from the streets to the water.

The9thDoctor's picture

I believe the Fed will continue QE. They won't call it QE, they'll call it by a different name, but it will be enough to fool the Wall Street Journal reading crowd.

The Fed's new program will be called Numerical Amelioration.

Lol, I came up with that name by putting Quantitative Easing into a Thesaurus.

made2trade's picture

Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that "The time to buy is when there's blood in the streets." NOT WARREN

10mm's picture

Nonsense. The FOX News crowd is gearing up for election time. Israel can do know wrong.

sixsigma cygnusatratus's picture

Looks like the Fed could really use some lessons here, from the Colombian and Mexican cartels, as to managing liquidity (i.e., covert QE)... 

kchrisc's picture

I had a blast with a Little League parent last night that thought my comment that 87% of the country is run by those from Ashkenazi was wildly off the mark.

So I took him to the bit out of date, but still relevant, site, Who Control's America.

I then explained what "return" is, and the ramifications of it: no connection or loyalty to fellow Americans, and the ability to actually flee when the time comes.

He was speechless when I finished. I topped it off with the background of the new "Ebola Czar."

When he asked me, "What does it mean," I told him to look around at the state of the country and economy, and see if the answer is not evident.

Who says informing the sheeple can't be fun?!

A non "return" able American, not US subject.

Stoploss's picture

"Moreover, the Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability."

 

Hurry up with the damn 3D printed livers, we're gonna need em...

NotApplicable's picture

My guess is it simply won't happen.

In other news, Homeland Security went on a panty raid last week!

http://hardballtalk.nbcsports.com/2014/10/22/panty-raid-homeland-securit...

There goes my security!

ZerOhead's picture

Wow

Things must be slow on the domestic terrorism front...

Chupacabra-322's picture

Yea, real slow. False Flag in 5, 4, 3, 2

Dr. Everett V. Scott's picture

My guess is it simply won't happen.

Not while Obama is in office.  He is the guy calling the shots, and he does not want the short term disruption that higher interest rates will cause. Politics above all.

In other news, the EPA wants to ban... Argon!

Timmay's picture

One fry cook fired but 2 cashiers hired = Job gains.

slaughterer's picture

So Kev' and his internee team need to preserve the illusion of "mild market disappointment" with a topping of "Fed is right, economy is gettin' better" illusion.   Whatever else happens, Belgium can wipe up in the wee hours.  

rubiconsolutions's picture

*FED SEES `SOLID JOB GAINS' WITH LOWER UNEMPLOYMENT

 

Dear Janet,

Please publish the address of the clinic where you get your pharmaceuticals. I would like to partake in some of that good stuff.

Best wishes,

Rubi

Lore's picture

The jobs report on Monday will be another lie. 

THESE PSYCHOPATHS ARE FORCING THE REAL ECONOMY TO ITS KNEES. WAKE UP, AMERICA!

Jack Sheet's picture

Shit on toast, there are a bunch of prudes lurking here judging by the downvotes.

tc06rtw's picture

DO YOU MIND ??!!
. . . I'm trying to EAT !

saints51's picture

Anybody want to BTFD

saints51's picture

lol. FED might give one more ramp as a farewell tour.

ZerOhead's picture

They have to exit QE with the markets remaining steady for an extended period of time to sell the wonderful job they did.

There must be a 100% chance of stability or they wouldn't have publicly ended QE.

Which means they have not ended QE... anyway... not like any audits are going to happen any time soon and don't forget hundreds of billions in CB currency swaps (where no actual swap just USD injections) back in  2008-2009 were never recorded on the books anyway...

saints51's picture

you may be right that it has not ended. All we can do is grab the popcorn and watch the show.

SilverIsKing's picture

I'm guessing this is the last flush on PMs for a while.  Watch Gold and Silver.  They seem dead in the water with nothing to drive them high and with them being so out of favor, watch them begin to move up soon.  COTs are favorable.  The Schiff hit piece is also a tell.  They paraded him out there to mock him.  He held his own but their reasons from hauling him onto the TeeVee is obvious.

ZerOhead's picture

Agreed. They just need to keep PM prices level.

Too low and China will dump treasuries and buy physical with both hands...

ultimate warrior's picture

Down goes gold. Big suprise. 

HedgeAccordingly's picture

and it is over... bruce jenner is a female now..

 

http://www.hedge.bz

Bell's 2 hearted's picture

he never wore the pants in that house anyways

MATA HAIRY's picture

YOU DON'T NEED TO TELL US ZH'ERS ABOUT BRUCE'S CONVERSION...OUR SPANK BANKS ARE ALREADY FULL OF HIS/HER LATEST PHOTOS

ebworthen's picture

Not raising rates, lying about:  inflation, employment, and the economy - while backstopping banks with ZIRP.

"Considerable time" = "Fuck You Savers!"

SilverIsKing's picture

How long until QE4 is announced?  Right after the election is my guess.

agent default's picture

Right after algos give the S&P500 a good nose dive.  TBTF have a very unique way of screaming give me moar.

Dr. Engali's picture

Thank you Belgium for your support, now Kevin get to work.

saints51's picture

I want to see a red candlestick on my monitor at least 10 inches long. Que the pervs lol.

LawsofPhysics's picture

Given the treasury debt they hold and maturities etc.  They are still very much a player in the bond "market"...

ekm1's picture

reverse repos

Infinite recycling back and forth with primary dealers and selected entities.

 

As I keep saying: Financial system can easily be fixed by overriding computers. 

Real economy cannot