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Fed Chickens Out Again, Fails To Raise For 55th Consecutive Time - FOMC Statement Comparison
Goldman wins again.
With a 54-0 record without a rate hike (better than Floyd Mayweather's), and 58 Economisseds expecting no change, 3 a half-pregnant 13bps hike, and 53 expecting a 25bps hike, The Fed was always going to break someone's heart today. Bond yields and the USD were tumbling into the decision, which appeared correct as The Fed chickened out again...
- **FOMC: NO POLICY CHANGE, 0-0.25% TARGET 'REMAINS APPROPRIATE'
- **FOMC: GLOBAL ECON,FIN EVENTS 'MAY RESTRAIN ECON ACTIVITY'
- **FOMC: VOTE 9-1; LACKER DISSENTS, WANTED 25 BPS HIKE
Given the "no hike", it is clear that, as we noted, Goldman is still in charge and Hilsy is still leaker-in-chief. All eyes now on the dot-plots as The Fed desperately tries to regain some credibility, stifle uncertainty, and calmly reassure markets that "we've got your back."
Pre-FOMC: S&P Futs 2000.5, 10Y 2.26%, 2Y 77.5bps, EUR 1.1330, Gold $1118
Additional headlines include:
- **FOMC LOWERS L-RUN EQUILIBRIUM FFR EST TO 3.5% V 3.8% JUNE
- **FOMC: 11 PARTICIPANTS SEE FFR BELOW 0.5% END 2015 VS 7 JUNE
- **FOMC: ECON WILL EXPAND MODERATE PACE W/ 'APPROPRIATE' ACCOM
- *FOMC: LABOR MKT IMPROVED,'SOLID' JOB GAINS, UNEMP DECLINING
- *FOMC: ONE PARTICIPANT SEES NEGATIVE FFR END-2015 & END-2016
- *FED: MKT-BASED MEASURES OF INFLATION COMPENSATION MOVED LOWER
Here are the key changes to the statement, which confirm the Fed's third mandate is now official: global stability:
Information received since the Federal Open Market Committee met in
June indicatesJuly suggests that economic activityhas beenis expandingmoderately in recent months. Growth inat a moderate pace. Household spendinghas been moderateand business fixed investment have been increasing moderately, and the housing sector hasshown additional improvementimproved further; however,business fixed investment andnet exportsstayedhave been soft. The labor market continued to improve, with solid job gains and declining unemployment. On balance,a range oflabor market indicatorssuggestsshow that underutilization of labor resources has diminished since early this year. Inflation has continued to run below the Committee's longer-run objective, partly reflectingearlierdeclines in energy prices anddecreasingin prices of non-energy imports. Market-based measures of inflation compensationremain lowmoved lower; survey?-based measures of longer-term inflation expectations have remained stable.Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term. Nonetheless, the Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate. The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced
.but is monitoring developments abroad. Inflation is anticipated to remain near its recent low level in the near term,but the Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects ofearlierdeclines in energy and import prices dissipate. The Committee continues to monitor inflation developments closely.
The world of economisseds was evenly split...
But ahead of the meeting, bond yields started to rip lower...
* * *
Since the last FOMC Statement (at the end of July) and FOMC Minutes (8/19), equities and bonds have underperformed...
Hike! - 42-year low jobless claims...
Don't Hike! - Inflation expectations testing post-crisis lows...
Not "Priced In"
Charts: Bloomberg
* * *
Full Redline Statement below:
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Even Rush Limbaugh just said, "I guess the bankers don't have enough money yet."
lmao pathetic, can't even give a token 0.25% hahaha this Ponzi is coming down soon I pray !!!!!!
ya hu https://www.youtube.com/watch?v=055wFyO6gag
That crapped what little cred they had left. Watch for massive dollar selloff
It is stunning that we are being ruled by a Yellen, Obama and maybe a Trump. We deserve what we get,; "By the people, For the People", is no linger operative.
Just say no to normal in the "new normal"... The new normal is perpetual Crisis for the 99 and free money for the 1
My skin is now in the game ... I just hope it's not a rug
Hilarious really...
"They don't have a clue. They are in uncharted waters and they are faking it." - Nomi Prins
"You'll hear the printing presses from Mars." - Marc Faber
Fuck you, yellen. Clueless kundt.
FED chose to acknowledge ongoing collapse of the US and world economy and acted to protect repo rates while killing almost of the collateral and drained any liquidity.
The FED as expected remained in the torpor and denial and continue killing the mainstream economy while fueling instability and possibility of NegIRP.
Here is what's really in going on:
https://contrarianopinion.wordpress.com/economy-update/
Will change nothing, the world of finance is still a corrupt shithole based on a fiat and lies.
Think about it. They are so afraid to raise even with the entire creadability on the line. They were called a bluff and they didn't even have the balls to take a swing !!! Wow how bad are things REALLY ??
Jamie and Lloyd said "No Hike". Hilsenrath told Yellen just before her announcement.
here comes the ppt ramp to make it look like that markets love it,remember intially there was NO REACTION
Right on. Any rally will be short-lived though. I'm certain we're going to see the markets continue to implode, which will provide the fuel they need to implement more QE. But first they need to scare the shit out of the world... and continued market crashing will do that nicely. Not to imply that the Fed would do this on purpose from this point onward... I think they're in the most horrible trap of their own making.
As soon as we start hearing noise about more QE, that'll be the time to load up the boat with physical silver, if you can find any. I think the reaction from silver by bursting higher at today's news will also be short lived. It should crash right along with the markets. But... and I can barely contain myself... when they start giving hints that the markets need to be rescued again... I'm loading up on silver. Already loaded with silver miners.
That was such a surprise.
Hyperinflators, start your engines!
Janet takes another ZIRP Bukkake....now, that's nasty....
Abraham Lincoln prophetically drew its portrait in these words:
"It (the Civil War) has been indeed a trying hour for the Republic; but I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow and the money power of the country will endeavor to prolong its reign by / working upon the prejudices of the people until all wealth is aggregated in a few hands, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before even in the midst of the war. God grant that my suspicions may prove groundless."
That is the true portrait, drawn by a master hand, of the Federal Reserve System.
In subsequent years you will see further growth of the monster, its ruthless methods of plunder, its machinery of despoilment, its monopoly of money and credit, its pawnbrokery and its huge mounds of pillage.
.... And in looking it over don't overlook the fact that you, you yourself—whatever may be your part in American industry—are laying tribute on the Federal Reserve altar of Mammon.
You can't escape its net of pillage. Amid its mounds of gold, currency and securities—the hugest ever massed together on this planet—your contribution is there.
Abraham Lincoln was seemingly the chief architect of the destruction of the American Republic. He is the one that forced the supremacy of the Federal government over the states and murdered 700,000 of the republic's citizens soley so that he could exert power over the rest.. Sherman's march was a most heinous act and sanctioned by the mass-murderer Lincoln.
Deflect all you want --- but my contribution, and yours... is there.
'Contributions' 'made' through threats of force and violence are not really contributions. Sure, the majority are willful participants, but there is an increasing number of those who have opened their eyes, realized they have been caged and are willing to fight their way out. Lines are being drawn as we speak, and eventually choices will be made concrete, the consequences and rewards of which, there will be no escape.......
The misappropriately named banks are now able to lower the stock market without the act being tied to the Federal Resverve tightening.
Is that a black swan I see on the horizon?
That is an interesting premise.
1:59 (click) 2:00
Good morning campers! It's ZIRPDOG DAY!
Better get those puts on and don't try to short....there's algos out there, just waiting to stop hunt you down.
MOOK!!!???
PMs going zing. cartel won't like that.
They'll just wait till the most illliquide time of the week and dump their contracts yet again.
Already getting pounded back down. Will be back to unchanged by the close. Load up on cheap puts.
Just a head fake like I said days ago.
I wonder if the timeline has been pushed back.
Hmm.
Are these delays signs that the globalists are putting off the “Big Move” till 2016, or are they just giving an abundance of justifications / propaganda ammunition to the BRICS in advance of a 2015 move against the US?
http://sitsshow.blogspot.com/2015/08/globalist-agenda-watch-2015-updates... "This question will be answered next month. Another punt from the Fed on raising interest rates and a deal in Congress that keeps the government running another 6-12 months will be clear signals that the Big Move has been rescheduled for 2016. But should the Fed raise rates or the government shut down, it’s still game on for 2015."It's almost a cliche to say this, but next week, it's all coming down, or at least a significant portion of it. Too many elephants on the stock market floor...stampeding.
The Boy Who Cried Wolf has become The Girl Who Cried Wolf. Hey at least the social justice warriors will be pleased.
Bloomberg TV just now--"job openings are reaching record levels !" " maybe some of those unemployed will decide they WANT to work".
Is panhandling on the street corner considered a "job"?
Uber's next big market
Rickshaws
Coolies WANTED
You're just unamerican if don't like the sector.
anyone who is awake already knew this
No shit about the third mandate. Federal Reserve you were tasked to look out for the American interest not Chinese not Brazilian, etc,...American interests. The fed is a traitor to America.
Federal Reserve is printing moar KIKE MMT (modern monetary theory) checks.
It's not what you said
is this the accouncement from FED annouce of the past, FED annoucement Current or the FED accouncement of Future. They are boxed in like the Japanese...damned if they do more damnded if the don't.
of course stawks go up bc this is bullish of course, that the fed can not fucking raise rates by .25 basis points, what can be more bullish than that?
nasdaq 5000 by tomm and s&p 2100 by tomm, everything is so fucking awesome, im feeling great
Exactly as I expected, and traded in advance through IEF and TLT. Thank you incompetent academic FED imbeciles for the easy quick capital gains :-))
The current FED team will NEVER raise the FFR, regardless of whatever they say publicly that the issues and reasons are, even though ZIRP has been disastrous for savers, financial and economic fundamentals, financial stability, profligate government deficit spending, etc.
The ONLY path out of ZIRP requires a replacement of the current FED team, which could not happen for at least the next 8 years AT THE EARLIEST POSSIBLE opportunity.
I observe that the Republican Party is calling for an end to ZIRP while the Democrat Party (Pelosi, Reid, Schumer, Hillary, Sanders, etc) is ALWAYS urging the FED to maintain ZIRP. Nuf said.
Hitlery has already said repeatedly she will tax the hell out of you and bail out wall street AND students and spend lots moar for the FSA. Tax and spend ....mmm sounds like a Dem to me.
The FIRST topic that every ambitious person should master is tax law and forms,
THEN
career knowledge and skills, and how to start and run businesses. There are some places in the tax code where clever resourceful non-wage serfs can shelter their earnings if they make the effort - wage serfs have NO escape from rape and plunder.
ZIRP4EVA!
ZIRPTERNITY
or maybe NIRPETUAL
It's what plants crave.
Ray Dailo... Is Quite Pleased... The Beautiful Deleveraging Continues... Barf...
<------- Yellen is an Imp
<------- Yellen is a Fairy Godmother
I am amazed that nothing has happened on the upside. It just goes to show one that the perceived probability of an increase was zero ... all increase (in ES, NQ) happened well in advance of the announcement. When a guy is expecting a little love and get nothing, he gets cranky ... watch out.
I heard a rumor that the FED is going to raise rates as early as December ................... /sarc, just in case anyone cares
There is no joy in Mudville, mighty Yellen has struck out!
Peter Schiff must be laughing his ass off.
My question is this: Does everyone in the world now know that the Fed is full of shit?
Where's the MOOK...!!!
To my surprise, gold price got a tinly little ~$11 pop. Of course, it *should* be more like an eleven-*hundred* dollar pop. And it won't last long anyway. They'll crash it down again tomorrow, or late Sunday night.
Ok... the Fed is finished with Quantitative Easing, and now will move onto Qualitative Easing. Y'know dropping $$ onto all the illegals coming through the southern border.
The SNAP card is for blacks and the AY_CARUMBA card for hidspanics. Whites get an ObamaCard charging 69% interest in memory of gay marriage.
God dammit I hate these fuckers. I hate them
This is the first time I've actually heard Ms. Yellen speak. I have to admit, up until now I didn't realize that she's retarded.
She sounds like a pollock that grew up in Parma, OH. Very distinctive accent. Have a listen.
Big Chuck and Lil John: Mary Hartski Wall Paper - YouTube
Yeah, her accent is distinct and to my ear doesn't really sound very bright. But at least she spoke well afterwards.
Haha... the most entertaining accent I have ever heard from an American is this one: https://www.youtube.com/watch?v=AVJ1UarRhEU
Everything that is going on: the Feds policies, Syria, Ukraine, oil prices, ZIRP, NIRP, Iran sanctions, Iraq, Anganistan, killing Gadhafi and Samdam on TV, the US supporting ISIS, baiting Putin and China is all geared to one thing: keeping the petro-dollar at any cost. The reserve status of the dollar is critical to continued power and propserity of the United States, and the petro-dollar is the key to keeping the reserve status. So the new mandate "global stability" is a code word for keeping the status quo, i.e. the supporting the petro-dollar first and foremost. The Fed has now admitted it is a puppet of neocon plans for global domination. So they will not be concerned about stability, but weaking any enemy of the petro dollar; threaten them with finacnial extinction if they don't go along.
Fed doves and hawks are all Keynesians, and believe in the stupid stimulus ideas Keynes puked up in the 1930's. They don't work. In fact, they work in reverse. More money equals more debt, which equals an economy encumbered by too much debt serivce, whichis intrinsically deflationary. Keynes also belived savings were bad, and should be discouraged as a matter of policy. This leads directly to zero interest rates to force money out of savings into the economy. That it impoverishes the savers is immaterial. One of his favorite terms was 'Aggregate Demand", which we have evolved into GDP. The use of such large aggregate metrics basically says all economic activity is of equal value: there is no such thing as malinvestment. That's like saying Steve Jobs and Bernie Madoff had equally good effects on the economy. Finally, equity investment comes from savings, and is more stimulative than debt investment. Keynes simply didn't understand the banking system, and considered these equally good for the economy.
In all fairness the Fed is handmaiden to the federal government on the one hand, and the banks on the other. They do their best to keep this rapacious system from imploding by keeping it liquid. Even though we will have to let it implode just to get it healthy again, this pain be disporportionally born by the lower classes as usual. Thus, getting rid of the Fed might be a good thing, but wouldn't solve the problem.
fuck you PUSSSSSSSSIEEEEEEEEEEEEEEEEEEES
I HATE you!
You believed the rate hike lies, didn't you. How many more times are they going to cry wolf, and you're going to believe it.
Hell, this must be the 53rd time they said they were going to raise rates. it's like watching Lucy destroy Charlie borwn, time and again. Friggin Charlie is a moron.
Here's a tip. They'll employ QE-infinity again, before they ever raise it 0.25%.
Sing along with Don Ho, you ho.
https://www.youtube.com/watch?v=mlCiDEXuxxA
may i propose a new verb? analogous to 'shit' - i.e. i yellen'd my pants or the dog yellen'd on the kitchen floor again...i bet we can get this to really take off
irrelevant
PMs up a widdy-biddy bit. The Cartel can't allow that, for long. Somewhere someone is sending the call out: "Monkeys, get your hammers!"
http://pre06.deviantart.net/2f83/th/pre/i/2010/099/1/d/max_monkey___mons...
Ahahahahaha that’s what I thought little Yellen Pelly http://youtu.be/0c-UIkfsk1U?t=1m49s
I believe Obama doesn't want his failed utopian "free money bitchez" written in historic record.
If the FED has a hundred year contract from 1913,has the contract expired? Or renewed? Did I miss some late night Congress back room deals?
OUT OF AMMO...
If the FED has a hundred year contract from 1913,has the contract expired? Or renewed? Did I miss some late night Congress back room deals?
OUT OF AMMO...
The stealing needs more time to work. Look a lot of people involved in the markets haven't had enough time. Some people have been left out on this theft and that just isn't "fair" so once again, you know the program get out there and get yours.