Goldman, Which Has Been Snubbed For The Second Time In A Row By FOMC, Shares Its Take On The Fed Statement

Tyler Durden's picture

First Goldman does not get its IOER cut, so desired back in September; now the Nominal GDP targetting which was the firm insinuated was coming, (and was insanity pure and simple) was not even mentioned. Jan Hatzius must be sweating: he is losing his monetary policy grip. In the meantime, as he sweats, here is his take on the FOMC statement.

BOTTOM LINE: FOMC statement broadly as expected. Committee modestly upgrades assessment of activity, but still sees “significant downside risks”. President Evans dissents in favor of easing.

1.     The statement following today’s FOMC meeting was for the most part in line with expectations. The committee kept current policy on hold, reiterating that the funds rate will remain low “at least though mid-2013” and maintaining existing asset purchase programs. The discussion of current economic conditions was upgraded modestly, consistent with the better tone of incoming data. The statement said that growth had “strengthened somewhat” and that household spending “increased at a somewhat faster pace”. However, it also noted that Fed officials still expect “a moderate pace of economic growth” and only a gradual decline in the unemployment rate.
2.     There were three small surprises in the statement. First, the committee said again that it saw “significant downside risks to the economic outlook, including strains in global financial markets”. We saw some chance that the committee would revise this phrase in light of the improvement in financial conditions. Second, Chicago Fed President Charles Evans dissented in favor of easier policy. This was the first “dovish” dissent since December 2007 (President Rosengren). Third, Presidents Fisher, Kocherlakota and Plosser chose not to dissent again at this meeting.
3.     Given that lack of policy action at the meeting, Chairman Bernanke will likely take questions on both communication and asset purchases at this afternoon’s press conference.

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GeneMarchbanks's picture

Plosser to dissent next up. These assholes are a disgrace...

Goldman continues to make very real cash on a very fake game being paraded as a science.

Financial_Guardian_Angel's picture

It is a disgrace. This is just window dressing. The real discussions and policy formation are made behind the scenes. Nothing more than theater for the benefit of the 99% (those not in the club).

GeneMarchbanks's picture

Good thing I'm in the 1%. The 1% that own physical that is.

AbelCatalyst's picture

Seriously, this 99% thing is such a joke...  If you averaged the salaries of the entire world (not just the US), you'd see that just about every one of those Occupy people are IN THE 1%!!!  

john39's picture

so call it the .00001% then.  surely the point of the 1% tag is not lost on most people.

LeonardoFibonacci's picture

Off to northern Poland with all of these thugs..........

French Frog's picture

"We saw some chance that the committee would revise this phrase in light of the improvement in financial conditions"

What planet's this guy on?

AbelCatalyst's picture

I get it...  

The real issue is how to deal with it.  The reason the 1% do what they do is becasue the 99% allow them to.  instead of occupying space take some real action:

  • Get of of debt
  • Live within your means
  • Lower your cost of living
  • Stop buying big shiny things
  • Buy a reasonable sized house or car (in cash after you save for years)
  • Gain a better apprciation of the things in life that are FREE
  • Love one another
  • Do unto others
  • Get to know your neighbors and grow some food
  • Buy PMs and hide under the radar in a modest home
  • etc, etc, etc, 

They only control us, because we have bought into their idealized, consumption society...  Stop doing that and the 1% lose complete control!    

DoChenRollingBearing's picture

Next up:

qussl3's picture

Ben aint making it rain before TSHTF.

Troll Magnet's picture

Agreed 1,000%  Everything has to plunge and politicians have to recant their criticism of the Fed and get down on their knees and beg before Ben starts printing again. 

Carlyle Groupie's picture

The Fed has to prep everyone for the coming hike. Goldmans about to step into the hurt locker.

Irish66's picture

back to 90 for you

fyrebird's picture

GS just failed to get one of the chairs as the music stopped.

But it's musical chairs on the deck of a sinking ship, so it doesn't matter who gets a seat in the game. The music is going to stop for all of us as the cold waters overtake the Titanic. And beneath the waves there be monsters.

Richard Chesler's picture

I refuse to read anything from Goldman until it is written from pound-them-in-the-ass federal prison.


gangland's picture


Santelli: it's hard to extract what's moving this market

trader: "they're painting the tape"


Raging Debate's picture

True but the monsters are actually not bad. They are called the global citizen. Perhaps all of us really fear the less known but even there our human nature hasn't changed that much over time. History tells us even real monsters only have a temporary day in the cycles of life.

Cdad's picture

Beg Jan Hatzius...get on your knees and beg for more free money.

NOTW777's picture

no one questions the fact that ben has been talking about "improving" economies and recoveries for the past 3 years

Deadpool's picture

they are willing to publish wrong info when it suits them. classic pump and dump.

ArkansasAngie's picture

Here's my take ... if you shatheads decide to spend any money on your disproven theories ... well ... let's just say it had better be their money and not mine. 



LongSoupLine's picture

Goldman will be worthwhile to the American public when it's nothing but a WorldCom.

disabledvet's picture

"just move the liabilities over to the asset side of the ledger and keep that stock price up." works until it doesn't

flacon's picture

Rosengren, Fisher, Kocherlakota , Plosser .....


Can't we have some American names on that committee?

qussl3's picture

Big Chief Monkey balls?

Troll Magnet's picture

I like Kuwanyamtiwa Ata'Halne.  That's a pretty cool name I think.  

Bastiat's picture

You know that translates to "Big Chief Monkey Balls," right?

Cdad's picture

News Flash...BlowHorn [CNBC]...Sharon Eperson:

"There is [suddenly] a lack of clarity on Greece."  No shit.  But while the Pacific Ocean was buying Euro dollars during the wee hours of the night...apparently there was absolute clarity?

Pull this network's license to broadcast, please.

"Comcast profit rises, overcomes [C]NBC drag"

disabledvet's picture

Start of a depression. "they blew up the exchange." ended up arresting the head of it when they did it too. Back in the thirties that is.

unclebill's picture

Time to use the "I don't recalled that......" sentence.

Tsar Pointless's picture

Can somebody do a fellow ZEer a solid and watch/report on Chairman Ben's presser for me this afternoon?

I was going to attend it in person, until I heard there wasn't going to be any punch and pie, as I had previously heard. I said to them, "Screw you guys! I'm going home!" and promptly stormed out in dismay and anger.


JR's picture

So, Goldman has been snubbed for the second time in a row by the FOMC.  How can one snub oneself? I guess it’s the opposite of patting yourself on the back; it’s stabbing yourself in the back. Mmm

Nathan Martin’s new slogan goes like this: Lying is a cooperative act. We, the 99%, no longer consent.

On Nate’s Economic Edge site yesterday:  

"Everything the ‘Fed’ does is designed to trick you. From their very name, all the way to every report they disseminate, nothing but lies, disinformation, disconnects between words and actions, and blatant self-interest all designed for them to profit at your expense. And robbing you they are. Their advertised inflation rate is running a little more than 2%, vastly understated I say. Today the University of Washington confirmed that for us in the Seattle area:"

The cost for two parents and two children to live in Seattle has rised percent in the last two years and for single people, it’s 19 percent more expensive, according to a University of Washington survey.

The Seattle reports the study indicates it costs a singe parent of two children in East King County $65,690 to meet basic needs, up 14 percent from 2009.

Lord Peter Pipsqueak's picture

Sorry,I thought GS and JPM WERE the Fed?

Motorhead's picture

I think JPM is the Fed, and GS is the Treasury Dept.  But, I guess that's like splitting hairs.

Motorhead's picture

Sounds like Goldman isn't giving enough money to Obama's re-election campaign.

Archimedes's picture

Who the fuck cares what Goldman's take is? I mean really? Why do you post this?