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Stocks Slide As Fed Warns "Not Prepared To Wait For Market"
With the US equity market jerking around on every headline (having jumped on DOE inventories?!), reports from MNI that the FOMC majority is not prepared to wait indefinitely for market participants to be fully on board, appear to have taken the shine off the exuberance. It seems yesterday's warning from Jerome Powell that there will be 2 rate hikes this year did not stall the stock bubble enough and so more "officials" leaked more information today.
As MarketNews reports, Fed officials have let it be known they realize they can't avoid all volatility and are prepared to move when they believe they have met two main conditions for "liftoff."
The Deutsche Boerse publication notes that the Fed has done everything it can to facilitate communication with markets, "including FOMC statements, press conferences, quarterly economic forecasts, Congressional testimony and speeches by key policymakers" to convey how the Fed perceives progress toward fulfilling the two conditions.
However, MNI is told the FOMC majority is not prepared to wait indefinitely for market participants to be fully on board.
MNI had previously reported on May 14, that Fed officials are highly sensitive to financial markets but are determined not to be ruled by them. "As much as the Fed would like to be in sync with markets and avoid excessive volatility, there is a sense it cannot be cowed by the markets into indefinitely delaying liftoff."
Needless to say, for now the Fed has been all talk and no hike, and any claims it won't be "cowed" by markets are nothing more than a sad joke and proof of just how cornered the Fed is by the very asset bubble it itself has blown.
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5 bps rate hike incoming.
Which will be held indefinitely before needing to be withdranwn at some point in the future.
How long have they been jawboning about a rate hike? A couple of years? At some point they have to puke something up just to move on to the next scam.
BLAMMMM!!
50 BPS HIKE NEXT WEEK!
Can't say they didn't warn ya..
The Feral Reserve has been trying to induce an orderly sell off
BUT NOOOOOO...
Mother of All Margin Calls about to hit hard
The Deutsche Boerse publication notes that the Fed has done everything it can to facilitate communication with markets, "including FOMC statements, press conferences, quarterly economic forecasts, Congressional testimony and speeches by key policymakers" to convey how the Fed perceives progress toward fulfilling the two conditions.
The bullshit is running deep and they helped create most of the problem. They know they are running out of time and are trying to hide the murder weapon......
These people are crazy.
If rates must be hiked, then do so.
Worrying about market reactions is simply, Insane I'd love to see rates hiked and the perpetual news of the Non-Recovery continue. Oh, would rates reverse back to their lows.
"Momma, don't let yer retarded grow up to be central bankers. Messing up everything money and such, killing economies, the world in a rut"
Glory be, you mean the Fed has indicated that it occasionally should do what is best for the economy and not what is best for the rich????
It's time to lower equity prices for another round of global leveraged buyouts.
July 1 they start tying student loans to the 10 year treasury rate. More fucking chaos.
Not sure that matters all that much since much of that won't be paid back anyway.
Yeah...right
" It seems yesterday's warning from Jerome Powell that there will be 2 rate hikes this year did not stall the stock bubble enough and so more "officials" leaked more information today."
Market hitting new highs on the QQQ. Calling their bluff.
What a load of bullshit...if the Fed thinks after having created the massive imbalances it can start to rebalance now when the demographics and economic growth will be the worst...wow, they are truly ivory tower fools or intent on imploding the system?!?
The chart in the link shows the demographic winter we are enduring and why spring is still a long ways off...
http://econimica.blogspot.com/2015/06/0ne-simple-chart-explains-great.html
As the POMO desk rolls on!
BTFD....no rates. QE until WWIII.
The Fed sure talks big about raising rates even as US GDP shrinks fast when you factor in real inflation.
If you adjusted US inflation by the average Chapwood Index (real inflation) for the last 4 years for just the last decade, US GDP is about $6 trillion instead of the official $17 trillion or so.
Real GDP has been -6.2%, -6.5%, -6.5%, -4.1% from 2011 to 2014 per the Chapwood Index
Truth is treason in an empire of lies.
http://www.zerohedge.com/news/2015-05-29/inaccurate-statistics-and-threa...
More jawboning bt the Fed. When will it end?
When someone big doesnt get paid.
When WE control the owners.
About the same time Greece exits the EU?
When they run out of asses.
There seems no shortage of them though.
What will come first? A Grexit or an interest rate rise.
Worse question since Lehmans
Largest borrowers are governments.......good luck with that!
I thought they were "patient". Now not prepared to wait? Yeesh
Got new orders from above. Gotta start singing the new tune.
Did that little cuntrag Hilsy approve this message?
Ouch, that 4 pts. off the S&P is scaring the fuck out of me.
3 pts and I crapped in my pants....but BTFD...no risk...
Trial balloon to see what kind of damage they're looking at...?
I don't think a single "reporter" has used the question time to inquire as to the actual level of rate hikes allegedly being considered. It's just an amorphous "rate hike". Or what the Fed considers to be a "target" area for eventual interest rates. Is it 1, 2, 5, 10%? Or 0.50 percent?
I understand they are going to implement the standard consumer penalty rate.
What is it today, 28% ?
Good one. Now THAT would be something to behold.
Markets own the Fed. Who do they think they are kidding? They are a one trick pony. Stimulate and get the bond, stock and real estate markets to rise at rates faster than earnings and income growth until the jig is up. This is Bubble, Act 3.
headline should read:
"FED not prepared to ask NY FED's Dudley to cut reverse repos from $180 billion/day to zero permanently and consequently remove fake leverage in the system."
Look at how abysmal the volume in the dow is.
Hm. Abyss is such a troubling word!
A hike is coming. I don't think it's cataclysmic.
By the time the Fed moves to raise rates at a volume or pace that resembles anything of significance or value, the major geopolitical 'move' by Russia & China will have already taken place. And not necessarily a military move, but a reactionary move in response to an uncalled for military action/s by the U.S.
In simple terms, they are waiting for a reason that not only gives them the 'green light', but the moral high-ground in the process. You don't kick your opponent in the teeth until he is flat on the ground.
Is the plunge protection team at lunch or something?
wow big whoop -- don 30 pts. ZH is too pessimistic
of course they will be cowed. the fed is all hat and no cattle.
It occurs to me that the Fed is not tolerating the volatility so much as they are causing it with leaks.
If there was a good pretext to raise rates, it was before 1Q data was available. Things have been lousy in the market since then.
Therefore the Fed is not data-driven.
What if, rather than raising rates as a face-saving-measure prior to continued QE, they are instead trying to pre-emptively justify more QE by CAUSING a more controllable down-turn??