• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

Fed Minutes: "Easing May Be Needed If Recovery Falters"

Tyler Durden's picture




 

Key highlights:

  • SEVERAL ON FOMC SAID EASING MAY BE NEEDED IF RECOVERY FALTERS
  • MOST' FOMC PARTICIPANTS SAW GRADUAL DECLINE IN JOBLESS RATE
  • MOST FOMC PARTICIPANTS SAW INFLATION SUBSEQUENTLY AT-BELOW 2%
  • MOST FOMC MEMBERS SAW UNEMPLOYMENT ABOVE TARGET IN LATE 2014
  • SOME PARTICIPANTS SAW RISKS INFLATION PRESSURES COULD BUILD

Actually, nothing new in the minutes which are largely a rehash of the official statement already released. The key paragraphs:

The Committee also stated that it will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate to promote a stronger economic recovery in a context of price stability. Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough.

 

Committee members discussed the desirability of providing more clarity about the economic conditions that would likely warrant maintaining the current target range for the federal funds rate and those that would indicate that a change in monetary policy was appropriate. Doing so might help the public better understand the conditionality in the Committee’s forward guidance. The Committee also discussed the relationship between the Committee’s statement, which expresses the collective view of the Committee, and the policy projections of individual participants, which are included in the SEP. The Chairman asked the subcommittee on communications to consider possible enhancements and refinements to the SEP that might help better clarify the link between economic developments and the Committee’s view of the appropriate stance of monetary policy.

 

The need to compensate for a substantial period during which the policy rate was constrained by the zero bound was also cited by a few members as a possible reason to maintain a very low level of the federal funds rate for a longer period than would  otherwise be the case.

The minutes - link.

 

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Wed, 05/16/2012 - 14:13 | 2432382 Global Hunter
Global Hunter's picture

I had to read that 3 times to get it lol.

Wed, 05/16/2012 - 14:46 | 2432531 resurger
resurger's picture

O_o

lol

Wed, 05/16/2012 - 14:14 | 2432373 Madcow
Madcow's picture

blah blah blah = deflation, deflation, deflation.

Money talks, bullshit walks.

 

Wed, 05/16/2012 - 14:16 | 2432389 fonzannoon
fonzannoon's picture

Is it worth it of gold goes to 1200 if AAPL takes a ride down to 400 with it? I say Yes!

Wed, 05/16/2012 - 14:15 | 2432390 catacl1sm
catacl1sm's picture

That little bump from the FOMC minutes didn't last long. MORE MINUTES, PLEASE!!!

Wed, 05/16/2012 - 14:21 | 2432430 Iam_Silverman
Iam_Silverman's picture

"SEVERAL ON FOMC SAID EASING MAY BE NEEDED IF RECOVERY FALTERS"

"That little bump from the FOMC minutes didn't last long."

I saw that too.  It's like the halflife of effectivity of FOMC statements is getting shorter and shorter.  They may have to actually DO something one day.....even if it's only symbolic.

 

Wed, 05/16/2012 - 14:16 | 2432391 citta vritti
citta vritti's picture

the easings will continue until morale improves

Wed, 05/16/2012 - 14:15 | 2432392 Bill D. Cat
Bill D. Cat's picture

They need to kill the markets to save the markets .

Wed, 05/16/2012 - 14:16 | 2432396 kralizec
kralizec's picture

How are the presses doing?

Wed, 05/16/2012 - 14:18 | 2432399 SilverCoinLover
SilverCoinLover's picture

Well, that was fun. The Fed minutes gave the market a hard-on for about...ten minutes!

Wed, 05/16/2012 - 14:18 | 2432404 in4mayshun
in4mayshun's picture

"Blah Blah, Blah Blah blah-blah-blah....

(We'll tell you what were thinking the day after we do it.)

Wed, 05/16/2012 - 14:19 | 2432406 q99x2
q99x2's picture

"Easing May Be Needed If Recovery Falters"

Your words are a vaporous rumor that puffs up but does nothing.

You might have to try the Drones, DHS, TSA and so on this time.

Wed, 05/16/2012 - 14:19 | 2432410 Monkeyfister
Monkeyfister's picture

It must be nice to have "High-Roller VIP" status at the Casino.

 

It's extra awesome to have an ATM next to the roulette table that regularly spits out free money from the Fed, Treasury, or the deposits and investment accounts of your clients to let you keep on doubling down.

Lucky them.

The rest of us, down here, just get to suck on it.

 

Wed, 05/16/2012 - 14:19 | 2432417 GOSPLAN HERO
GOSPLAN HERO's picture

The Fed is printing $100 billion each month?

Wed, 05/16/2012 - 14:19 | 2432420 JLee2027
JLee2027's picture

Why even publish these Communists? A modern day Pravda, that's all they are.

Wed, 05/16/2012 - 14:23 | 2432426 MFL8240
MFL8240's picture

The US clowns are back in the news!  Sure inflation is very low if you dont buy anything.  I have come to the point where I beleieve nothing that comes from anyone that has any connection to this goverment.  It is sickening to watch this intentional deception.

Wed, 05/16/2012 - 14:22 | 2432433 junkyardjack
junkyardjack's picture

What recovery? I'm confused now...

Wed, 05/16/2012 - 14:26 | 2432440 Kokulakai
Kokulakai's picture

They've been blowin' recovery up our azz for a year

Regardless of reality, if the Fed wants this to be recovery... it is.

Key statement in my opinion:

"if agreement is
not reached on a plan for the federal budget, a sharp
fiscal tightening could occur at the start of 2013."

 

Now, what is Bohner threatning?

Wed, 05/16/2012 - 14:32 | 2432477 walküre
walküre's picture

Cash is King.

Wed, 05/16/2012 - 14:49 | 2432557 engineertheeconomy
engineertheeconomy's picture

It was up until about 5 minutes ago. Now 100 oz bars are king

Wed, 05/16/2012 - 15:04 | 2432634 walküre
walküre's picture

Mittens Romney's mandate is to buy up all American assets for his overlords on the cheap with a strong US Dollar.

Romney's mandate is to do a ROLL UP of the American, heck maybe the global economy.

Vicious Wall Street Style.

Diluted currency won't go very far in that strategy.

Wed, 05/16/2012 - 16:54 | 2433048 DosZap
DosZap's picture

Now, what is Bohner threatning?

Exactly this....................ZERO more $$$$$ for Benny, unless matching cuts to go with it.

Wed, 05/16/2012 - 14:31 | 2432474 dexter_morgan
dexter_morgan's picture

Ooooh, PM buying dip ahead!

Wed, 05/16/2012 - 14:32 | 2432481 Snakeeyes
Snakeeyes's picture

Bernanke hints, the world goes crazy.

Elizabeth "The Duke of Hazard" said that credit should be relaxed ... again. Didn't the US just get nuked by doing this?

http://confoundedinterest.wordpress.com/2012/05/16/dukes-of-hazard-fed-hints-at-more-easing-elizabeth-duke-wants-relaxation-of-credit-standards/

Wed, 05/16/2012 - 14:38 | 2432490 Bastiat009
Bastiat009's picture

Whatever the news, gold is crashing.

Wed, 05/16/2012 - 14:37 | 2432496 guinea
guinea's picture

The thing is all the state government pensions are tied to stock market performance. Hence the number one priority of this administration is to pump up the equity markets.  These pensions need 8-10% returns to stay solvent as they are woefully underfunded.  You the taxpayers get to hold the bag of shit.  This is what happens when you have Democrats "negotiating" with public sector unions on the taxpayers' behalf.

Wed, 05/16/2012 - 14:38 | 2432498 Clowns to the l...
Clowns to the left_ jokers to the right's picture

They're easing all right. Easing that red hot poker right up the everyday American's ass.

They just needed a little rally to keep things perky in the face of global financial chaos until the Failbook IPO.

Wed, 05/16/2012 - 14:47 | 2432548 surf0766
surf0766's picture

It is like watching the ball drop on New year's .

Wed, 05/16/2012 - 14:38 | 2432500 TonyCoitus
TonyCoitus's picture

A spoonful of sugar helps the medicine go down.  Hopium, hospice, burial.  Easy as 1, 2, 3.

Wed, 05/16/2012 - 14:52 | 2432572 Sans-culottes
Sans-culottes's picture

Move along nothing to see here but failure from Benny Boy...Why are you not distracted with American Idol...lol. Fed=Failure

Wed, 05/16/2012 - 14:54 | 2432575 DavosSherman
DavosSherman's picture

"If"

Wed, 05/16/2012 - 14:55 | 2432581 warchopper
warchopper's picture

Here is a quote from Krugman which essentially says the Fed is ineffective:

"It took a gigantic sacrifice to get inflation down, with no real sign that the Fed’s credibility made any difference."

 


Wed, 05/16/2012 - 21:45 | 2433800 All Out Of Bubblegum
All Out Of Bubblegum's picture

Besides Krugman and Bernanke, who else thinks the Fed has cred?

Wed, 05/16/2012 - 15:00 | 2432613 KandiRaverHipster
KandiRaverHipster's picture

meanwhile all the newly printed money is FedEx'd out of the country

Wed, 05/16/2012 - 15:03 | 2432628 ArrestBobRubin
ArrestBobRubin's picture

Sound and Fury, signifying nothing.

Except another 4% hit on silver to accompany FOMC day. What a fanatastic buy price they gave me, thank you guys and gal!

Please do it again next month fellas, I'm really in no hurry over here. And I know you are.

Wed, 05/16/2012 - 15:09 | 2432651 q99x2
q99x2's picture

Its only words and words are all I have to ramp the market todaaaaay.

Wed, 05/16/2012 - 15:13 | 2432668 earnyermoney
earnyermoney's picture

How much do these jackals earn for producing the same minutes for every meeting?

Wed, 05/16/2012 - 15:12 | 2432670 moonman
moonman's picture

If at first you don't succeed...try try again.

The FED version:

If at first you don't succeed try the same exact thing again, then try something a little different and if that doesn't work just try the first thing again.

Wed, 05/16/2012 - 16:10 | 2432888 Frastric
Frastric's picture

Big question; are the Fed talking about GDP recovery or DOW recovery? Probably DOW recovery... Inflation whoring bastards.

Wed, 05/16/2012 - 16:28 | 2432952 Bicycle Repairman
Bicycle Repairman's picture

You got that?  If the recovery falters, they'll print.  If deflation gets serious, they'll print ^2.  They may pause, but the endgame is spelt P.R.I.N.T.

Wed, 05/16/2012 - 16:51 | 2433036 HungrySeagull
HungrySeagull's picture

They are gonna not just print but build a great gleaming city.

Never mind the rot and stink down here among the roaring thunder of the presses.

Wed, 05/16/2012 - 18:07 | 2433241 MrBoompi
MrBoompi's picture

My personal recovery has been weak of late, so Mr Fed, can you please add a couple of zeros to my accounts too?

Wed, 05/16/2012 - 21:44 | 2433795 All Out Of Bubblegum
All Out Of Bubblegum's picture

I used to have an uncle that went to AA and drank after meetings. He always told me he was in recovery.

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