FOMC Does Nothing, Notes Inflation Threat - Full Redline Comparison To January

Tyler Durden's picture


Expectations going in were apparently of no material change likely with some increase in dissents. It seems the market is initially disappointed by the Fed's lack of "we'll print 'til we die" comments as Bloomberg notes:


Notably, economic "growth" has moved from modest to moderate, and inflation word count: 6.

Going in ES was +11pts at 1377, EUR 1.31 (weaker on day with USD modestly stronger on day), Gold/Silver/Oil unch, and Treasuries +3-4bps on the day (with 30Y at 3.21%).

Immediately after, Treasury yields higher and steeper, ES small down, USD stronger, Gold/Silver down pretty good.

Red-line comparison to the January statement below (pdf):



And for those who are sentimental about the good old days, here is a redline from the just released FOMC statement to that from March 2011.

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Tue, 03/13/2012 - 14:18 | 2251100 Mongo
Mongo's picture

Is that the FEDbot or the real FED?... can't make up the difference...

Tue, 03/13/2012 - 14:27 | 2251132 TruthInSunshine
TruthInSunshine's picture


Let the consumer-led discretionary item demand destruction (unless it can be had on bad credit) rip higher, and bring in Big Government Sugar Daddy to backfill the craters (at a rate of about 46% deficit spending).


*Sorry for the shouting. FOMC-RedShield "baffle 'em with bullshit" days are exciting. /s

Tue, 03/13/2012 - 14:30 | 2251162 BLOTTO
BLOTTO's picture

FED SAYS - We are going to keep jerking off and fudging the numbers across the board until Obama gets in for a second term


Tue, 03/13/2012 - 14:42 | 2251211 whstlblwr
whstlblwr's picture


Tue, 03/13/2012 - 14:44 | 2251219 jus_lite_reading
jus_lite_reading's picture

Does it really matter? I think someone posted this but I think it needs to go viral... all those who stand for justice!!!!

Tue, 03/13/2012 - 14:53 | 2251272 whstlblwr
whstlblwr's picture

I stand for justice! Mother fucker status quo psychopath creeps who only care for yourself. Hey you fuck heads bankers who read this blog, your days are numbered. We will win in the future. Maybe not now, but we have your number.

Tue, 03/13/2012 - 15:32 | 2251453 TruthInSunshine
TruthInSunshine's picture

"Eat your Melamine Peas & Pink Slimeburger while we make more Peace in the Middle East, and be sure to say something if you see something terroristy."




Big Sis

Tue, 03/13/2012 - 18:55 | 2252169 whstlblwr
whstlblwr's picture

Not terroristy, days 'being in power' are numbered. Everyone, no matter how corrupt should have long full life, just not with power over direction of country.

Tue, 03/13/2012 - 14:32 | 2251171 spekulatn
spekulatn's picture

Well said, TIS.

All  bullish, bitchez.

Tue, 03/13/2012 - 14:34 | 2251174 Cursive
Cursive's picture


My question for Keynesians is why are we suppossed to forget the "Long Run" because we're all dead, but all bad policy consequences are "temporary"?

Tue, 03/13/2012 - 14:38 | 2251185 TruthInSunshine
TruthInSunshine's picture

I don't know, but I highly advise everyone to not buy gasoline, food or anything else that's priced in correlation to commodities or oil right now, but rather, wait for 6 months to 2 years for the prices on these things to fall, based on The Bernank's forecasting acumen.

Tue, 03/13/2012 - 14:40 | 2251200 greensnacks
greensnacks's picture

But i'm hungry

Tue, 03/13/2012 - 14:41 | 2251208 TruthInSunshine
TruthInSunshine's picture

Eat your iPadHD and wait it out like most people!

Tue, 03/13/2012 - 14:57 | 2251283 Sakka
Sakka's picture

There is an app. for that!

Tue, 03/13/2012 - 14:30 | 2251159 Ruffcut
Ruffcut's picture

That's the real fed, just like the muppets on sesame street, but doing hand jobs above and below the stage. After the meeting they pick who gets all the creampie.

Tue, 03/13/2012 - 19:38 | 2252285 Buck Johnson
Buck Johnson's picture

For them to admit this that means inflation will be very very hard on all of us.

Tue, 03/13/2012 - 14:21 | 2251101 GeneMarchbanks
GeneMarchbanks's picture

Inaction... what a tool.

Any dissents?

Tue, 03/13/2012 - 19:47 | 2252318 UP Forester
UP Forester's picture

There'll be perceived inaction until perceived velocity.

That is all.

Tue, 03/13/2012 - 14:18 | 2251102 Quinvarius
Quinvarius's picture

Buy gold.  They are still in denial.  And it will revalue upwards even if they weren't.

Tue, 03/13/2012 - 14:27 | 2251149 Hansel
Hansel's picture

Selling gold on FOMC days is tradition.


The Fed's PR Team

Tue, 03/13/2012 - 14:40 | 2251202 Quinvarius
Quinvarius's picture

I know.  That is why I waited.

Tue, 03/13/2012 - 15:10 | 2251343 trav7777
trav7777's picture

Pt>Au even on the bid now

Tue, 03/13/2012 - 15:35 | 2251475 Sudden Debt
Sudden Debt's picture

Yep, getting rid of other countries dead weight and putting that storage space in the basement to better use :)

Tue, 03/13/2012 - 14:31 | 2251164 jus_lite_reading
jus_lite_reading's picture

They will stop at nothing to keep the ponzi going. For anyone with at least 1/2 a brain that means buy all the PM's you can. I am not interested at how high the price of gold goes because it means nothing to me in the long scheme of things. The DOW could go to 36,000 for all I care because that will mean gold is at least $6,000/oz and silver is $250/oz. Anyone holding ponzi money and ponzi stocks will see what happens when the music stops......

Tue, 03/13/2012 - 14:43 | 2251213 gjp
gjp's picture

All the volatility (and downward price action) is in gold and PMs.  Stocks just sleepwalk higher and higher.  Not the way it's supposed to be.

For now it's almost like stocks are behaving more like money (stable store of value, rises with inflation) than gold is.  It's all so f***ed up.

Fuck you Bernanke!  (and Daimon, and Geithner, and Obama, and Blankfein, and ...)

Tue, 03/13/2012 - 14:24 | 2251104 asteroids
asteroids's picture

Dear FED. Which lie do YOU believe in? Doesn't matter. The market will NOT fall on a FED day. heh heh.

Tue, 03/13/2012 - 14:19 | 2251106 Tsar Pointless
Tsar Pointless's picture

Transitorily bullish.

Tue, 03/13/2012 - 14:19 | 2251108 Gene Parmesan
Gene Parmesan's picture

Oh good - inflation will be pushed up (further), but it will only be temporary. I was worried for a minute there.

Tue, 03/13/2012 - 14:26 | 2251145 A Man without Q...
A Man without Qualities's picture

Remember, inflation is a measure of change, so gas prices will increase to unaffordable levels and then stay there...

Tue, 03/13/2012 - 14:36 | 2251189 Gene Parmesan
Gene Parmesan's picture

Good point. I suppose we should then be troubled by the fact that they didn't specify how much inflation lies ahead. Nah - the Bernank wouldn't steer us wrong!

Tue, 03/13/2012 - 14:39 | 2251197 tekhneek
tekhneek's picture

2% of course, or in plain english "flesh wound"

Tue, 03/13/2012 - 19:52 | 2252334 UP Forester
UP Forester's picture

It all adds up over time, however.

According to , an item bought for $1.00 in 1913 now costs $22.89.

2,189.4% inflation over 100 years isn't so bad, is it?

Tue, 03/13/2012 - 14:19 | 2251109 Corn1945
Corn1945's picture

The very existence of this organization drives me nuts. Blatantly unconstitutional, incompetent, and a threat to productive citizens everywhere.

Tue, 03/13/2012 - 14:19 | 2251113 Schmuck Raker
Schmuck Raker's picture


Well, that's a bit backward.

Tue, 03/13/2012 - 14:22 | 2251128 GeneMarchbanks
GeneMarchbanks's picture

They mean from here probably.

Tue, 03/13/2012 - 14:25 | 2251140 urbanelf
urbanelf's picture

Oil & Gas says that the Fed will push up inflation?

Tue, 03/13/2012 - 14:32 | 2251172 scatterbrains
scatterbrains's picture

I think what he means is they plan to push gas prices so high you wont have money for anything else.. thus deflationary in the real world but unrelated to their hft algo driven paper markets which they will at the very least hold in check against any down side action.

Tue, 03/13/2012 - 14:36 | 2251186 walküre
walküre's picture

TEMPORARILY - until they crash down due to an orchestrated "flight to safety" event which will happen when the Fed wants it to happen.

Same as it ever was.

Tue, 03/13/2012 - 14:20 | 2251114 hankwil74
hankwil74's picture

By the time they (Uncle Ben et al) actually consider inflation a risk, they're going to be about 3 years too late

Tue, 03/13/2012 - 19:53 | 2252339 UP Forester
UP Forester's picture

What happened to the 15 minute inflation-stopping promise?

Has that been hyper-rehypothecated?

Tue, 03/13/2012 - 14:20 | 2251115 Al Huxley
Al Huxley's picture

So that big reversal in the VIX, where it opened gap down below the lower bollinger band and is now up on the day, that's nothing to be concerned about is it?  I mean, the party's still on, right?

Tue, 03/13/2012 - 14:20 | 2251117 The Axe
The Axe's picture

Brian about to hit buy button on AAPL   that is all they need to do.....

Tue, 03/13/2012 - 14:20 | 2251119 digalert
digalert's picture

ah ah ah bullshit!

excuse me

Tue, 03/13/2012 - 14:20 | 2251120 JuicyGrabs
JuicyGrabs's picture

Flash crash?

Tue, 03/13/2012 - 14:21 | 2251125 gjp
gjp's picture

So as we speak, the Fed's ridiculous 'admission' of 'temporary' 'inflation' sends PMs tanking and equities surging from already surgetastic levels.

Fuck 'em all!

Tue, 03/13/2012 - 14:21 | 2251126 Sudden Debt
Sudden Debt's picture

Thank god inflation is only temporarly!!
Just like the employment numbers....

Tue, 03/13/2012 - 14:22 | 2251129 djsmps
djsmps's picture

Temporary is the new transitory.

Tue, 03/13/2012 - 14:24 | 2251130 Dr. Engali
Dr. Engali's picture

Party like it's 1999 bitchez the Bernank has our back! Next stop dow 36,000 loaf of bread $100.00

Tue, 03/13/2012 - 14:24 | 2251135 Peter K
Peter K's picture

The FED's boxed in . Reduced to babbling Obama talking points:)

Tue, 03/13/2012 - 14:24 | 2251136 JuicyGrabs
JuicyGrabs's picture

Likely headline: "Market turns negative after digesting lack of easing news from Fed".

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