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Unanimous Fed Remains "Patient" On Target To Normalize Rates, Expects Lower Inflation - Full Statement Redline
With all eyes firmly focused on the words "patient" on rate hikes, "considerable" period of lower rates, and "transitory" oil-driven deflation, The FOMC did not disappoint
- *FED REPEATS IT CAN BE PATIENT IN STARTING TO RAISE RATES
- *FED SAYS ECONOMY HAS BEEN `EXPANDING AT A SOLID PACE'
- *FED CITES `STRONG JOB GAINS' AND LOWER UNEMPLOYMENT RATE
- *FED SAYS INFLATION EXPECTED TO DECLINE FURTHER IN NEAR TERM
So shrugging off the global tumult, The Fed appears set to raise rates no matter what to remove themselves from the corner they are stuck in, wary of what they can do when the next 'event' hits home.
Pre-FOMC: S&P Futs 2024.50, Gold $1286, 10Y 1.778%, EURUSD 1.1339, Dec15 ED 99.285. Full redline below.
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Liquidity disappeared into the statement
As you can see - eMini liquidity is at its lowest levels for this time since at least 2010 $ES_F pic.twitter.com/x5KiLPaiwn
— Eric Scott Hunsader (@nanexllc) January 28, 2015
Since The Fed ended QE3, Bonds are up almost 14%, stocks flat, and precious metals up 9-11% (oil down 42%)
And since The Dec 2014 FOMC, Silver is up 15% with bonds, gold, and USD up around 7%
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In light of today's statement, we thought the following would be interesting...
What The Fed said in the past about The Dollar strength...
h/t @JohnAuthers
And Unemployment...
h/t @enlundm
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And the full statement redline:
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LOL everything is "fine" in the economy but we need a few more months to give big banks more $
I saw implied volatility drop during the statement. Bids on both calls and puts dropped, especially SPY puts.
"Was it because of the Fed statement or was it because of banksters out for dinner one night and decided they’d go kill the American middle class," Hillary Clinton said. "What difference – at this point, what difference does it make?"
Gotta be patient when plundering.
What a shit show. Two imcompatible events, if history is worth anything.
100% controlled financial world by a select few satanists. Now go pay your taxes, muppitchez.
*FED STATEMENT NO LONGER CONTAINS “CONSIDERABLE TIME” PHRASE
.....THE "CONSIDERABLE TIME" SHOULD BE USED TO BEAT THESE FUCKERS WITH A KNOTTED PLOW LINE.....
"PATIENT" = Willing to wait until the next century to raise interest rates...
Patient critical in ER on life support and death watch.
Translation - "We will let the oligarchs better position themselves before the next grand consolidation occurs. "
fucking thirty year is low as shit
She's dead Jim.
They didn't say they would be good jobs.
Lower unemployment = reduced workforce participation.
Less demand = less inflation.
Except the quote says "strong job gains" causing lower unemployment. Historically, strong job gains result in wage inflation and increase in money velocity. By their own statement, it proves the FED is completely full of shit.
HEHEHEH
WTF I SAID YOU MOOKS!
IT'S ALL ABOUT CHINA!!
"Take it slow. It'll work itself out fine. All we need is just a little patience."
—Axl Yellen
Um Deflation has got us by the balls and their is nothing we can do but give you these riduculous meetings where we change a few words around
Old Yeller
MetallicA Yellen:
Has Taken My Sight
Taken My Speech
Taken My Hearing
Taken My Arms
Taken My Legs
Taken My Soul
Left Me with Life in Hell
Deflation? I just got back from the grocery store and I didn't see any deflation. Also just paid my HC Premium, and am still looking for that $2500 per family 0zer0 promised. I bet a lot of people aren't seeing any deflation in rent or education either, and sure as hell aren't seeing any deflation in services like phone, cable, utilities, taxes, etc. The gas price drop isn't coming close to making up for all these other increases. The only real deflation is in wages and savings. It's inflation everywhere else baby.
She was in the row in front of me at the `91 concert. Hammered out of her mind.
She's such a pussy, I don't think she even HAS any balls.
The man behind the curtain is furiously pulling the levers back and forth.
and being patiently manipulated by that Tramp from Babylon.
Raise rates just 50 bps and fannie and freddy go boom!
Not to mention debt service, housing sector, subprime auto and a whole host of other ticking timebombs.....
Sorry but where does it say the Fed WILL raise rates?
DavidC
The word "raise" does not appear in the redline pdf.
They said so in the last meeting scheduled for June. Rates can never go up, it's mathematically impossible at this stage, they will go lower however.
What the FED claims to be afraid of was a one time event that will never occur again.
The 70's inflation the FED so "fears" was simply an adjustment coming off of the gold standard.
There is no such thing as inflation as it is described by the FED, because their ploicies ensure ultimate deflationary pressure (kill jobs).
If the workforce participation rate was the same now, as it was in the 70's , then we would have the inflation problem.
No jobs = no inflation...
If monetary debasement transmitted directly to the plebs, you could stoke inflation in a hurry. We see this in part with govt. stim. via transfer payments such as food stamps. They bump up food stamps 10x, there would be a jump in food prices.
So, what data do the Fed use on their employment numbers? BLS crap, or real numbers? Aren't they sort of forced to use "official" numbers for employment since they've captured the market/government?
I expect markets to fully roll over at this point. Further QE is already priced in for the REAL economy, i.e. J6P continuing to get fisted. Watch 2000 on SPX for breakdown.....
Nope. The Fed will just covertly print money and buy whatever drops. I wouldn't be surprised if it owned 30% of all outstanding stocks.
This kind of statements i was waiting for: even the perma bears give up and expect another doubler ;-)
Hmmmmmm - markets roll over and 2000 is tested but holds up? This shit's too easy....
Where's the gold crash? Janet? Are you there?
Hey Yellen! Hike this up your ass: www.endthefed.org. Fuck the Fed!
The Fed rate won't be increased until 2017+- if ever, country is going down the $hithole.
Such bullshit. Their focus on unemployment is farcical. The unemployment number now only represents the work-in-process between the employed and the professional government check collectors.
average normalized interest rate is 5%
the white haired garden gnome will be long dead (as will the republic) by the time the criminals raise rates to their historical averages
a token 15 basis point increase isn't nothing but more jawboning to perpetuate the myth the filthy feds know what they are doing
party my pad when this piece of filth meets her eternal fate
I'd spin at that party for free.
and i will bring the e
raise rates you bastards....jump. You think things are fine then prove it. Put your damn rates where your mouth is!!!!!!
Mr Market isn't happy
Patient on Affordable Care.
"FED REPEATS IT CAN BE PATIENT IN STARTING TO RAISE RATES"
uhh, we're 5 years 7 months into the "recovery" ... i'm not getting any younger
I think that's the plan, we'll all be dead before the Banksters ever have to do anything.
We are the patient with a fiat borne disease.
$44.13 crude at new 5.5 year low, collapsing to the 43s, isn't responding. Reflate this Janet:
http://www.investing.com/commodities/crude-oil-advanced-chart
Apple aside ... this ship going down
US enters recession no later than Q1 2015
... this might well be the all time high of Apple in the forseeable future (12 years). But who knows, maybe its even more worth than the index its in ;-))
Well, I guess that clears everything up? On to the next shinny red ball. Did Tom Brady deflate???? Anyone??? Anyone??
King Dollar (on rate increase):
Bring It!!
FED SAYS ECONOMY HAS BEEN `EXPANDING AT A SOLID PACE'
FED CITES `STRONG JOB GAINS' AND LOWER UNEMPLOYMENT RATE
WTFOMC?
These Fed PhDs are blowing smoke.
The Federal Reserve bank has become a BS fun house full of mirrors.
FOMC changed to: The Federal Opinion Management Committee.
TRANSLATION:
WE'VE FUCKED SOME FOLKS, BUT MORE ARE ON OUR LIST, SO BE GOD DAMNED PATIENT WHILE WE FIND THOSE FUCKERS AND FUCK THEM. ON THAT, WE'RE UNANIMOUS.
THE FUCKS......
Now if countries just start unpegging from the dollar that would be real sweet.
The US dollar would start dropping like a $10 whore.
Just wait until they startup a larger QE this year.
We all know the Federal Reserve can't and won't raise rates until forced to by the market.
This Fed reminds me of Adolf Hitler during his last weeks in his bunker in Berlin: he moved divisions on a map that no longer existed or had been decimated, as if he still had the mighty Wehrmacht of 1939 at his disposal, free to do his bidding and realise his grand schemes.
All that is left now are a few levers to pull, spiced with some jawboning and fancy but increasingly hollow words. This is the phase before becoming irrelevant.
If this is the way the markets digest the news, then the $usd should follow the markets. Any premium from Fed. jawboning is already priced into $usd, and the $usd should follow the markets and continue to decline.
I was more worried about Fed. dovishness getting the markets excited, and causing $usd inflows to the equity markets.
We live in "opposite land" with all this CB intervention.
I agree. Could be some nasty times for equity next couple of weeks.
Just to make sure I have everything correct, regardless of what the FED says, we still front run the 3:30 ramp and BTFD right?
Equity lovers: Where do you think Janet is going to take you while leaving the banks in the dust?:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=spx&insttype=&freq=1&show=&time=7
The un-fed only looks at the numbers they want to see, always have. They are not in anyway connected to the real world. No fall out will or ever has reached them.
Tough shit for the serfs and their childrens, children who will pay. They will shit the entire room, exit and let them clean it up.
These assholes will blow the whole thing up given time. That time is fast approaching.
Its more like the statement said...we are going to wait to see what the ECB QE does and then we will see what to do..
" This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments."
Rates are never going up.
This tug-o-war between reality and fantasy is amazing to watch.
The Fed is running out of magic beans.
China and other countries should all line up announcing their going to unpeg from the US dollar.
Then watch the fun.
I see a big "Nothing Burger"... The Fed. is running on borrowed time, and they know it... Negative Rates here we come.
Obammy Kare and CL nuked the trade deficite.
The Fed. Voting Governors might as well be " Garden Knomes".
Yen - I don't think that the Fed will do negative nominal rates, because if they do, the sheeple will finally realize the scam. The trade off quickly becomes the Bank of Sealy Postupedic versus gold/silver. Physical demand will approach retard if not full retard very quickly. The of course gold dsales "regualtions" come into play etc... but if one gets the Phyzz before the black neo Bolsheviks pass the laws it will be very valuable.
The voice of Ms. Janet, followed by the voice of Mr. Market:
http://www.investing.com/indices/us-spx-500-futures-advanced-chart
The Gig is up, the news is out.
We've finally heard you and we do not believe you.
Isn’t it amazing that unanimity of the Fed Board is so common. You can’t get two economists or traders on, (pick a medium or venue) to agree on anything.
But, they get 12 to agree unanimously.
The only thing I can compare it to is when Netanyahu speaks from the Well of the Senate and all 535 people who can’t agree on anything, unanimously cheer every word.
Some people just know how to run a meeting I guess.
Or is that run a cabal?
Groupthink at it's finest. They believe themselves to be elite and superior.
It's like watching a group on Family Feud all cheering an answer they need to win, but know in their hearts is not only wrong, but stupid to boot.
"Patient". What is this, Dr. Phil?
The problem is monetary policy don't mean squat to the economy, hasn't worked with a damn even for employment and certainly not for wages, as soon as wages blip up two cents they panic.
"Patient". What crap. Do they actually have any freedom of movement at this point? Debatable.
Why prolong the pain and agony, just drop the Fed rate to zero.
"Narayana Kocherlakota, who believed that the Committee's decision, in the context of ongoing low inflation and falling market-based measures of longer-term inflation expectations, created undue downside risk to the credibility of the 2 percent inflation target"
Bwahahahaha.
The Fed is trying to tell you that aq rise of.25% is only NOMINAL rates, they do not mind if real interest rates go negative. In fact they will print MOAR and raise nominal rates .25% just to show they really DO know what they are doing.
Wassa mattah you....Wassa at mattah you face....