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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Mongo's picture

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

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

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


whstlblwr's picture


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!!!!

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.

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

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.

spekulatn's picture

Well said, TIS.

All  bullish, bitchez.

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"?

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.

TruthInSunshine's picture

Eat your iPadHD and wait it out like most people!

Sakka's picture

There is an app. for that!

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.

Buck Johnson's picture

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

GeneMarchbanks's picture

Inaction... what a tool.

Any dissents?

UP Forester's picture

There'll be perceived inaction until perceived velocity.

That is all.

Quinvarius's picture

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

Hansel's picture

Selling gold on FOMC days is tradition.


The Fed's PR Team

Quinvarius's picture

I know.  That is why I waited.

trav7777's picture

Pt>Au even on the bid now

Sudden Debt's picture

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

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......

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 ...)

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.

Tsar Pointless's picture

Transitorily bullish.

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.

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...

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!

tekhneek's picture

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

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?

Corn1945's picture

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

Schmuck Raker's picture


Well, that's a bit backward.

urbanelf's picture

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

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.

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.

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

UP Forester's picture

What happened to the 15 minute inflation-stopping promise?

Has that been hyper-rehypothecated?

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?

The Axe's picture

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

digalert's picture

ah ah ah bullshit!

excuse me

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!

Sudden Debt's picture

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

djsmps's picture

Temporary is the new transitory.

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

Peter K's picture

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

JuicyGrabs's picture

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