This page has been archived and commenting is disabled.
FOMC Minutes Show Deflation-Wary Fed Not Worried About Global Growth
Having done nothing but rally since the FOMC statement on 10/29 that ended QE, the minutes provide little additional info aside from to note that some participants wanted to drop "considerable time":
- *MANY FED OFFICIALS SAW LIMITED IMPACT FROM GLOBAL SLOWDOWN
- *FED OFFICIALS SAW NEED TO WATCH FOR INFLATION EXPECTATIONS DROP
- *FOMC OPTED NOT TO MENTION FINANCIAL MARKET TURMOIL AFTER DEBATE
If they don't mention, it never happened!!
Pre-FOMC Mins: S&P Futs 2045, USDJPY 117.75, 10Y 2.349%, Gold $1194
A reminder of the idiocy that occurred in stocks at the last Fed Minutes...
Some of the highlights from the report. On the domestic economic outlook:
Most viewed the risks to the outlook for economic activity and the labor market as nearly balanced. However, a number of participants noted that economic growth over the medium term might be slower than they currently expected if the foreign economic or financial situation deteriorated significantly.
On the global outlook:
period. It was observed that if foreign economic or financial conditions deteriorated further, U.S. economic growth over the medium term might be slower than currently expected. However, many participants saw the effects of recent developments on the domestic economy as likely to be quite limited. These participants suggested variously that the share of external trade in the U.S. economy is relatively small, that the effects of changes in the value of the dollar on net exports are modest, that shifts in the structure of U.S. trade and production over time may have reduced the effects on U.S. trade of developments like those seen of late, or that the slowdown in external demand would likely prove to be less severe than initially feared. Several participants judged that the decline in the prices of energy and other commodities as well as lower long-term interest rates would likely provide an offset to the higher dollar and weaker foreign growth, or that the domestic recovery remained on a firm footing.
And inflation:
Inflation was continuing to run below the Committee’s longer-run objective. Market-based measures of inflation compensation declined somewhat, while survey-based measures of longer-term inflation expectations remained stable. Participants anticipated that inflation would be held down over the near term by the decline in energy prices and other factors, but would move toward the Committee’s 2 percent goal in coming years, although a few expressed concern that inflation might persist below the Committee’s objective for quite some time. Most viewed the risks to the outlook for economic activity and the labor market as nearly balanced. However, a number of participants noted that economic growth over the medium term might be slower than they currently expected if the foreign economic or financial situation deteriorated significantly
Full Statement
»
- 6355 reads
- Printer-friendly version
- Send to friend
- advertisements -
Nails it... moar inflation!
http://hedgeaccordingly.com/2014/11/has-qe-ended-the-era-of-using-the-10...
My God, these minutes are earth-shattering! I gotta go buy some stawks. And fast!
Buddy, you best get in line!
All these buybacks are makin' 'em collectors items, they ain't makin' any more!
The minutes should just say, "Hey, we want to make the biggest bubble ever and will say whatever it takes to get that."
MUST MAKE A NEW ALL TIME FUCKING HIGH, CAN NOT FINISH RED.
THESE ARE YOUR UNRIGGED MARKETS HERE
Where the hell's Goldman's comments? The minutes have been out for minutes already, what the fuck is wrong with these guys?
Inflation requires something to inflate, maybe Viagra would help.....
Translation: "We will back the banks and Wall Street while punishing savers for numerous calendar periods."
i think sully said they use the word "inflation" 68 times in this report V 8 from the last
nothing about the great Chicken Cordon Bleau for lunch....
Right, not worried about global growth. Because the US doesn't sell any products overseas.
au contraire. We export all sorts of weapons of financial mass destruction.
Did someone say deflation? The Fed reacts after the fact. They end QE before it should have been ended (not that it should have been implemented to begin with). Money velocity is at zero and the CNBC blokes think higher rates are on the way. Huh? http://buygoldandsilversafely.com/gold/is-deflation-still-a-threat-to-go...
Don't listen to the fucking BlowHorn Doug.
Rates aren't going anywhere...because they can't normalize them. Impossible without blowing everything up....stawks, bonds, RE, etc...
Bay of Pigs, who said anything about rates going up? I say exactly what you said in most my articles. Hence my comment about the potential of more QE in this article to fight higher rates. Can you even read?
BTW, my calls on the gold and silver markets and more have been spot on if you care to look through my articles and current thoughts.
Love BlowHorn.
I wasn't criticizing you. I hear you loud and clear.
Love BlowHorn? :)
I would argue that it is the FED's free money policies that are the cause of the "Deflation".
100% Pure Bullshit.
"in discussing economic developments abroad, participants pointed to a somewhat weaker economic outlook and increased downside risks in Europe, China, and Japan, as well as to the strengthening of the dollar over the period. It was observed that if foreign economic or financial conditions deteriorated further, U.S. economic growth over the medium term might be slower than currently expected. However, many participants saw the effects of recent developments on the domestic economy as likely to be quite limited."
uh huh
last go round worried about usd strength but (since proven powerless to weaken it) now decide "ain't no big thing"
Deflation is not a bad thing when its really disinflation.
Ugh!! what a phucking headache! this shit is never going down as long as the Fed is Phucking with the market. I give up.
FOMC you Yellen
Just as INFLATION benefits the banks in the short term (what banker thinks beyond the short-term?? Answer: NONE); deflation benefits all of the working public, 99.999999% of the people, in the short-term.
Over the longer term, we are all dead (at least for "this" lifetime) and it is someone else's problem.