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Fed Hikes Rates, Unleashing First Tightening Cycle In Over 11 Years
On the 7th anniversary of entering ZIRP, and for the first time since June 29th 2006, The Federal Reserve announced today that it will try and raise interest rates:
*FED RAISES INTEREST RATES 0.25 POINT IN UNANIMOUS VOTE
Of course, the flowery language and dots are as dovish as possible while maintaining some semblance of credibility with regard growth expectations as The Fed unleashes a tightening cycle for the first time in over 11 years.
Pre-FOMC: S&P Futs 2050, 2Y 98bps, 10Y 2.29%, Gold $1072, Oil $36, EURUSD 1.0960
Wow - 10-year Treasury liquidity - lowest I've EVER seen it.. back to 2008 at least
— Eric Scott Hunsader (@nanexllc) December 16, 2015
Heading into the decision, gold and silver suddenly started to fade, bond yields slid notably, and the USD jerked lower.
What's happened since The Fed folded in September? Macro "data" got worse... Market "data" got better...
The Fed has never raised rates in December when stocks were down over the last 6 months...
h/t @RyanDetrick
And when it has raised rates in December, stocks have pushed lower.
The Fed is raising rates today with the VIX above 20 for the first time since 2000...
That did not end well...
The Fed is also raising rates with Junk bonds trading worse that after Lehman...
* * *
In the end, the Fed did not surprise, and raised interest rates for the first time in almost a decade in a widely telegraphed move while signaling that the pace of subsequent increases will be “gradual” and in line with previous projections. The Federal Open Market Committee unanimously voted to set the new target range for the federal funds rate at 0.25 percent to 0.5 percent, up from zero to 0.25 percent. Policy makers separately forecast an appropriate rate of 1.375 percent at the end of 2016, the same as September, implying four quarter-point increases in the target range next year, based on the median number from 17 officials.
“The committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective,” the FOMC said in a statement Wednesday following a two-day meeting in Washington. The Fed said it raised rates “given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes.”
The increase draws to a close an unprecedented period of record-low rates that were part of extraordinary and controversial Fed policies designed to stimulate the U.S. economy in the wake of the most devastating financial crisis since the Great Depression. The FOMC lowered its benchmark rate to near zero in December 2008, three months after the collapse of investment bank Lehman Brothers Holdings Inc. and 10 months before unemployment in the U.S. peaked at 10 percent.
* * *
Full Redline below:
The number of words per statement:
There was much expectation that the Fed's announcement would be a Dovish hike based on a reduction in the 2016 median dot, however the Fed did not do that, and instead while the Kocherlakota negative dot was removed, the FOMC kept the median 2016 fed funds rate at 1.4% for year end, suggesting 4 rate hikes during 2016 and that the market is underestimating the pace of rate increases.
Where there was some dovishness was in the 2017 year end median FF, which was reduced from 2.6% to 2.4%. This can be seen in the compared dot plots.
Additionally, what is perhaps even more surprising is that while the Fed did boost its 2016 year end GDP forecast, it cut the median core PCE forecast from 1.7% to 1.6%, suggesting that the deflationary forces continue to prevail aside from the "transitory" impact of oil.
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Fuck The FED!!
RIPS
We are still so far from a recovery
Layoff List: http://www.dailyjobcuts.com
-
Looks like I might have to open up a soup kitchen.
My first and ONLY customer:
Janet Yellen on foodstamps
She is fucking suicidal.
"...I felt a great disturbance in the Force, as if millions of algos suddenly cried out in terror and were suddenly silenced. I fear something terrible has happened to interests rates...."
-Master Bernanke
Unanimous too... haha...
I wonder if they're trying to feign strength? Nah...
Rally on until reality sets in. That won't be long.
Fair play to Old Yeller for starting to flush the turds that Bernanke left in the toilet.
And get a new server Tyler.
BOOM!
The farce awakens...
She's wearing purple! Any of you psychology brains here want to elaborate? I've been told about personality colors and the colors people choose to wear, etc... Purple is NOT good.
That new Jew Wars movie is certainly a Farce.....
This rate hike, we shall see....
Dusting off my Pets.com certificates...Lets light this candle!
Let's get Webvan back out there on it's own!
Me thinks the Fed might be smarter than they look and they purposely delayed raising interest rates until they knew 80% of traders would be on Christmas vacation
it worked well in 1937.
http://www.federalreservehistory.org/Events/DetailView/27
Purple is the color of ROYALTY. It is the color associated with wealth, wisdom, and power.
Many "Financial Experts" will wear purple ties in public appearance.
Nero banned the wearing of purple during his reign over Rome under the penalty of death.
The subliminal message is that she has the ultimate power.
That is one power hungry and prideful CUNT...who has only served to fuck you and empower her friends.
Yellen is the 7th highest paid person at the fed...she's not even queen of her own castle. All this old fool does is bake cookies and bring them to meetings (she is a damn good baker). As a lifelong academic, Yellen jumped at the chance to sit in the seat of power..no one even knew this trolls name 2 years ago.
I knew her name well more than two years ago as she was the Governor of the Federal Reserve Bank at San Francisco.
Just because you do not follow the career paths of the people at the FED does not mean that everybody else does not.
You do not advance to becoming the Governor of a Federal Reserve Bank by baking cookies.
She is one vicious bitch, politically connected, has the ultimate seat of power, and it DOES NOT SERVE YOU, nor anyone else for that matter, to underestimate her, as she, and the rest of that nest of vipers, is out to FUCK YOU OVER.
Her compensation in an intrinsically worthless currency is not indicative of the role which she plays.
She is not there for compensation. She acts to CONSOLIDATE HER POWER and is quite SELF INTERESTED.
It is not about the money. It never has been.
Only the enslaved are interested in the currency of enslavement.
took my comment a bit to literal.. Was just illustrating that Yellen does not make 1 decision at the fed. She didn't even make them in San fran. I worked for NY Fed for half a year when I came out of grad school (don't even put them on my resume) before running for the hills (you would not believe the incompetence of 80% of the workforce..the rest are fairly bright (book smart only)).
You would think San fran fed would be a key member bank...they are one of, if not the lowest volume bank (for the number of financial institutions they "regulate"). No one on the east coast + central US (Dallas/Chicago) pays any attention to what they do.
This woman deserves no where near the credit you give her. Remember who appoints the fed head...
remember who told "who appoints the fed head" to?
"purple" is given to "followers" temporarily...
She was the Chair of Bill Clinton's Council of Economic Advisors from 1997 to 1999.
https://en.wikipedia.org/wiki/Janet_Yellen
Release the Kraken !
https://m.youtube.com/watch?v=gb2zIR2rvRQ
Silver and gold making a nice bump!
LOL
There goes the punch bowl. Get ready for the junkies to come out and cry.
You sound Fed UP?
I bet they've got their foot to the floor still on those printing presses while the lips lie
This should accelerate things.
Re-posting this point from yesterday:
The last time oil was $36/bbl, in December 2004 (when Tom Brady was only 2 Super Bowl rings into his utter domination of the NFL), gold was $440/oz. So while the shills at CNBC are focused on the credit-levitated stawk bubble, the reality is that gold has roughly 2 1/2 times its purchasing power than 11 years ago. And that's ignoring the monkey-hammering affects of the GLD-to-Comex physical ratio.
Fuck Tom Brady, Belichek and the multi-time caught cheating Cheatriots. If they were blatantly caught twice how many other times did they get away with cheating. Patriots are the perfect team to represent America and it's Oligarchs. Dominant by in broad daylight cheating. I'm not even an nfl fan and I still loathe the Cheatriots.
I'm with you on Gold though. ;)
I wonder if you loathe the Vikings and the Chargers - the two teams confirmed of tampering with footballs in the 2014 season - as much as you loathe the Patriots.
Or could it be that your loathing wells up from the fact that the Patriots have won more than every other team since the dot-com bubble burst?
What would Occam's Razor say? Bueller? Anybody?
0 SuperBowls won by the Patriots without SpyGate or DeflateGate
But they did almost have a perfect season!
#Almost
Your realize every team in the NFL was doing the same "spying" as the patriots...if your angry because they do a better job at it than most other teams...I'd say your anger is a bit misplaced.
(All this coming from a Jets fan)
at least Tom Brady's wife makes more than he does!
bullshit. but i guess since you said it it must be true.
Were there penalties imposed on those teams or did a Massachusetts judge step in like they did for Brady? Yeah, it is the fact they keep getting away with it and "winning" that I find offensive. Much like the lakers from 2000-2002. Totally aided and abetted by the commissioner. Anyways I have loved closed to 100% of your posts mayhem, but I can't stand that team and that's even acknowledging Brady as a generational talent which he is. The fact that Brady is talented enough to win frequently without cheating makes the cheating worse not better.
Appreciate the nod. I'll keep you on my "nice" list (Flakmeister is not on that list).
But still...check out http://yourteamcheats.com/, which puts the Patriots as "below average" cheaters in the NFL. Tops are Denver, the Jets, and the Steelers. All of whom are regularly denied SB appearances by Bill & Tom.
You are now on a list of people who keep lists.
Cheaters? I heard the Patriots are... RACIST!
Where is Freddie when you need him? Freddie!?
I loathe people that spend too much time talking about and thinking about football. A ethanization program to thin that out would be good.
We have many more important issues facing our children and grandchildren right now.
Rules of Fight Club
I don't even really follow the NFL. Many of my friends do so I've learned by osmosis the little I know. I just don't like cheating in any for.
Send your friends in first against the brutal war trolls. Other than that advice, I have no answers.
indeed. euthanization.
war trolls first.
Chargers fan here; fuck you.
Bring the Gold, you want some cheese with that wine?
I thought Most Zher's study the facts and look at the facts before hurling accusations, apparently when it comes to sports .ogical facts and truths go out the window.
See my reply above. I treat sports very differently than history, geo-politics and economics. It can be a fun distraction, but not something I spend hours researching. I know enough to not like cheating and favoritism. Mayhem has opened my eyes to the fact that apparently cheating is rampant. I don't really think it's worth wasting anymore time on the NFL. I shouldn't have commented on Mayhem's post. I just really like his posts so the Brady love annoyed me.
CNBC can’t stop saying how dovish the fed statement is, but a rate hike is tightening plain and simple. The markets are buying the “a rate hike is dovish” BS for now, but we’ll see how long that lasts when reality hits.
Don’t let the markets see this chart.
Rate hike IS dovish.
Now pull my finger!
Janet Yellen: Poster-Boy for Abstinence
"Janet Yellen: Poster-Boy for Abstinence"
Get back to me when you're 95; you have no idea how soft and firm Janet is compared to a 95 year old women...
She is a brutal war troll executing her portion of the agenda. When you think war troll, think 10gauge, machetes and flame throwers.
JENGA! BITCHES! Keep pulling out those sticks!
This is Zero Hedge. Everybody knows that it's not bitches, it's BITCHEZ, BITCHEZ!
Who is your avatar?
"Who is your avatar?" The wife:)
You're married to Hitomi Tanaka (per google images)? How do you feel about her career path? ;-P
That is not Hitomi Tanaka; that's a solid USA redneck white girl...not the actual wife...but close...especially that middle area...
Since it's starwars week, "google image finder, you have failed me for te last time **force choke**". So who is that then? Some impressive...erm..."Gravitas".
YAHOO! WEE! WOOP WOOP!
Wait, why am I happy about this? You'd think Janet just turned lead into gold with the level of excitement in the press.
USA "Woop, Woop":
An expression designed to express approval, happiness, joy, and/or excitement
Australia "Woop, Woop":
A term meaning far away from anything of interest, as in "he lives out in woop woop". Equivalent terms include "beyond the black stump", “Boondock” and “out in the sticks”.
Love you Aussie's!
"Beyond the Black Stump"...only in Australia!
..."She is fucking suicidal." YES ! She is also SO fucking ugly ! That could be an explanation...
Let her eat cake. And make her and her ilk bake it themselves.
So I guess now that silver covered it's gap down candle on the charts & made the jews a few paper sheckles along the way, the paper leveraged shorts can recommence as the jew owned FED suddenly & unexpectedly changes its mind in a few days.
YAWN! - Nobody could ever, possibly, have seen this coming!
Exactly 7 years. And Zero Hedge servers DDoS'ed on announcement.
Somebody doesn't even care who knows anymore. Well, it's not as if even marginally conscious human beings were ever in the majority, or even influential minority...
More people acces zh than we know.
u beat me to it.
looks like ZH has redundant routes. I was down while others were posting..
Private jets taking off for Paraguay in record numbers
Paraguay? I hear the Bush Clan and Reverand Moon have some great real estate down there...
so does Angela Merkel
Perfect ! Gather them all in one place then bomb the shit out of it... as shown in "Clear & Present Danger"...
Curiouser and curiouser...
Ah Ya!? Lots of war criminals in Paraguay. If Jeb suddenly disappears, that might be a hint of what's next.
Maybe Tel Aviv.
Update 92 sounds like a nice plan if they can avoid all out revolution and anarchy. The propaganda should get really thick now.
Come on ZH, you should have known to invest in servers for this day. Either that of the TPTB sent us a little message.
10-4 on that.
How will this affect us? Well, I don't think anyone knows, this is uncharted territory.
Here's my guess (highly educated guess). The business cycle will contract even more, stocks will get hit. Company stock buybacks will cease. Commodities will keep going down....dollar will go up, for a short time. Real Estate is about to get more expensive nominally, while house prices will take a big decline. Layoffs will happen even faster. Anyone with a lot of debt is going to be in real trouble. I may have to move into my trailer.....hard to say. I think they will reverse course when this takes effect and then go negative rates and announce qe4. Meanwhile more false flags as they ramp up the NWO.
I have my bug out van all stocked and fueled so i can live in it down by the river.
Too bad the river is polluted.
Big Berkey or, in a pinch, coffee filters.
I dont think that will filter out PCBs.
Thanks H_4_D.
Do you have any concerns about a tightening in Government Cheese futures? I'm looking for some inspiration here!
Too bad a river bank is generally not an easily defensible position. Sitting duck comes to mind.
Yep that pretty much sums it up
Yep, the ZH crash is the signal from TPTB...... The markets will not be far behind. What, did you expect them to ring a bell or send you a telegram / email / carrier pigeon ???
I totally believe this is part of the show:
- PPT ready to pump the market a percent or two higher
- Janet drugged, fed with prozac and briefed on being slightly confused but always positive ("mention "strong economy" at least 35 times")
- CNBC, Hilsenrath and all the other journalists all perfectly orchestrated
aaaaand:
- hack ZH, so no negativity after the hike
You know, I fully expect Janet to "stroke out" during a press conference in the next week or two. The Fed will then have their patsy, they can blame the crash on poor ol Janet Yellin, God Rest her soul ...
Prop up the ole whore next to Ariel Sharon
I believe that it was an attack
The Management of Perspective is the goal. The PPT is also heavy at work today.
Friday will be very interesting with a Quadruple Witching.
Zerohedge will probably crash and burn when the Rackets crash and burn on Friday.
Uh... Excuse me? I misspelled Markets as Rackets?
Uh...No. That was intentional.
After all, it's illegal to yell "run" in a crowded bank.
I have yelled out, and quite loud, "Is there a run on your Bank?", when denied a withdrawal.
I did not go to jail nor was I ever arrested for that..
You are not an activist and refuse to protest?
You are FEARFUL of the authorities.
Fear is what leads to the Dark Side. I suggest that you lose it.
it most certainly was not human user traffic.
Once and done ?
More to come ?
Vote now
There's a third option: One and UNdone
Or... Once, and Well-done...
As in, throughly over-cooked...
And NOT in a good way...
NIRP is coming!
ZH traffic taking down the site at the moment of FED annc? People trying to get the straight dope.
I hate it when it happens. Right at 2 pm EST.
That happened back in July too. Right at the same time NYSE went down because techincal glitch.
Tyler should check for fine metal debris in the lube oil filter.
...and sparks in the fuel tank
NIRP & QE coming.
That was so shocking it sent ZH down for the count.
Frazier's DOWN!
For the benefit of the uninformed;
There is nothing Federal about the Fed.
Well they are connected in that the same people own both.
Federal Reserve Bank is a) Federal, b) a Reserve, c) a Bank, d) None of the above?
F.). About to hang from lamp posts ...
A rather strange, politically motivated decision as there is no real inflation in sight!
The agenda rolls on......
http://beforeitsnews.com/conspiracy-theories/2015/12/as-events-spiral-out-of-control-its-time-to-take-a-closer-look-at-agenda-2030-video-2472972.html
This is just the fed's way of saying "I Love You" and will be bringing you into recession, depression and WWIII...but "I Love You"
Don't forget...all the fed's friends have become quite fat and prepared to weather the next couple of LEAN years...
Then they will sizzle and pop when burned.
Shot, hacked, burned meat.
Sure enough, a fresh round of panic buying. AMZN $1000 here we come!
Haven't been able to access ZH for an hour!
Leftist group unveils disturbing anti-Trump ad
http://tinyurl.com/jhdxecq
http://i.giphy.com/xTk9ZMvytLICEWw9bi.gif
BUY BITCOINS SAVE THE WORLD!!! nooo, not in the face.
and so it begins...
so rate hike threats = Dow rally
then actual rate hike = Dow rally
everything not matter how bad = Dow rally
thanks for listening.
My observation as well.
Its just a short squeeze tomorrow will be telling.
Bonds have been trending down for almost a year. Much more than 1/4 point. That is why the actual announcement doesn't matter. Priced in, and then some.
Fuck the dow. If you read zh you should know all the ways it's manipulated.
I miss the days when zh was about finance and commenters knew a lot about trading.
I miss the good old days too and could definitely do without the vapid political and culture war commentary articles.
The geopolitical articles on the other hand (eg Syria and Ukraine) I feel are hugely important and obviously have massive impact on finance.
I still cannot comprehend how they managed to do it without causing even a 10% sell-off in stocks? This is f* magic. What has changed since August? Have they quietly promised to jail all 'malicious' stock sellers the way China does or what?
Thanks for listening =dow rally/silver 1.50 bucks
We're trapped in the belly of this horrible machine, and the machine is bleeding to death...
That's one way to get out of the machine, now isn't it?
(Sung to the tune of Let it Snow)
Oh the bellwethers are so frightful
And the Fed is not insightful
The market has no place to go
Let It Die! Let It Die! Let It Die!
It doesn't show signs of stopping
ZH has bought more corn for popping
Morality is turned way down low
Let It Die! Let It Die! Let It DIe!
Kaiser-
Logged in just to say I appreciate the Godspeed You Black Emporer lyric.
And a cold wind blows.
Indeed.
Diarrhea flood.
Fire-Rhea Conflagration!
Of the mouth! Jeez.... She can yap.
I want to puke every time I hear that we have a strong economy.
If you're on Wall Street, or work for the Government ( any Government), it's
ROCKIN',!!!!
Direct deposit, 1st and 15th.
Include the FSA.
It may not be a strong economy compared to pre 1971, but this is as good as it gets. Be happy if you have a few part time jobs in the service economy. Be joyous if one of them pays benefits.
Today marks the end of a gigantic bubble in EVERYTHING. Jobs, energy, commodities, food, ...
I think the unwind will be very slow and mostly orderly. Decades. That does not mean it won't be painful for millions and maybe billions.
You think it's going to be orderly and take decades? Seriously? I'm sort of in shock to see that opinion on here. Can you be so kind as to elaborate on your position? Thanks.
Down goes ZH! Down goes ZH!
I was suffering from withdrawl for an hour.
Not cool Tylers.
Thank your Israeli Government. Or was it the Chinese?
(Speculating. From where did the attack orginate, Tyler?)
Bangin - you back to work tradin yet ? How was that 5 martini lunch ?
"Oh, the humanity!"
https://www.youtube.com/watch?v=F54rqDh2mWA
Excellent refernce, and one of the great sporting calls ever.
RIP Howard.
/es up 10 after the flurry
YEAH! MOTHERFUCKERS!!! THAT'S THE WAY WE ROLL!
who cares?
That is one ugly bitch.
Wells out the gate raising
Yellin got strong armed by her Chinese overlords.
Sum Ting Wong, and Ho Lee Fuk.
Gold Maples just got ordered...
will wait a little while for more Silver since its so grossly manipulated and thus super cheap....
DEATH TO THE MONEYCHANGERS.....
geez. a measely quarter point, and the ZH website shits itself.
ZH down for so long, those were the worst minutes of my life!!
Never hit refresh so often....
Braggart.