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

Tyler Durden's picture

Key highlights:


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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Madcow's picture

blah blah blah = deflation, deflation, deflation.

Money talks, bullshit walks.


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!

catacl1sm's picture

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

Iam_Silverman's picture


"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.


citta vritti's picture

the easings will continue until morale improves

Bill D. Cat's picture

They need to kill the markets to save the markets .

kralizec's picture

How are the presses doing?

SilverCoinLover's picture

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

in4mayshun's picture

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

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

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.

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.


GOSPLAN HERO's picture

The Fed is printing $100 billion each month?

JLee2027's picture

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

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.

junkyardjack's picture

What recovery? I'm confused now...

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?

engineertheeconomy's picture

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

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.

DosZap's picture

Now, what is Bohner threatning?

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

dexter_morgan's picture

Ooooh, PM buying dip ahead!

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?


Bastiat009's picture

Whatever the news, gold is crashing.

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.

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.

surf0766's picture

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

TonyCoitus's picture

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

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

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."


All Out Of Bubblegum's picture

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

KandiRaverHipster's picture

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

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.

q99x2's picture

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

earnyermoney's picture

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

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.

Frastric's picture

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

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.

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.

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?

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.