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Today's Economic Data Docket - The Fed

Tyler Durden's picture




 

Today's existing home sales data, which will simply confirm that there is no hope for the housing market, will be completely ignored as everyone focuses on what gizmo Bernanke pulls out today from his magic bag of tricks.

Goldman recaps:

10:00: Existing home sales (August): Rebound. Goldman forecasts that existing home sales increased by 4.0% (month-over-month) in August to an annualized rate of about 4.85 million units. This would reverse the decline in July and return existing home sales to their June level. The consensus forecasts a smaller increase of 1.7% (mom).
GS: +4.0%; Consensus: +1.7%; Last -3.5%. MAP: 2
 
14:15: FOMC statement: Easing action. We see a high probability that the FOMC will announce further easing steps at the conclusion of today’s meeting. Several factors argue for action now rather than later. First, the FOMC put in place an easing bias at the last meeting. Second, Fed communication has indicated that easing options will indeed be discussed at the meeting. Third, the Fed will be technically prepared to use most of its remaining tools. Many of the options likely to be discussed have been around for a while, the staff has had time to assess these tools further since the August 9 meeting, and the committee has now had two days to finalize details.
 
A change in the composition of the Fed’s balance sheet—“Operation Twist”—looks very likely. However, there is still considerable uncertainty about the size and maturity mix of the sales and purchases. As a complementary measure, we also expect that the committee will announce a cut in the interest on excess reserves (IOER) rate to 0.1% from 0.25%, although this is a much closer call. An IOER cut would lower market interest rates a small amount and could aid communication.
 
We see low odds of a change in the Fed’s communication of its policy objectives, a proposal supported by Chicago Fed President Evans and others. This is a complex and somewhat controversial idea, and likely requires further discussion. There also appears to be little appetite on the committee for an outright expansion of the Fed’s balance sheet

 

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Wed, 09/21/2011 - 07:52 | 1691661 PaperWillBurn
PaperWillBurn's picture

The U.S Should make a 2 sided gold market at $20,000 per ounce. Discussed at LBMA conference

http://www.lbma.org.uk/assets/C11S2_Hepworth.pdf

page 12/12

Wed, 09/21/2011 - 07:59 | 1691680 oobrien
oobrien's picture

It's QE3 time, bitches.

Otherwise known as Operation Twist.

You gold and silver bugs should be loving this.  You're about to make quite the profit.

Congrats.

http://geraldcelente.proboards.com

Wed, 09/21/2011 - 08:05 | 1691697 Smiddywesson
Smiddywesson's picture

We should have made quite the profit on the SNB intervention, but this market is rotten.  Anything can happen.  All that is sure is that PMs will win out in the end and unbacked ETFs will crumble. 

Wed, 09/21/2011 - 07:54 | 1691669 PaperBear
PaperBear's picture

"his magic bag of tricks" ?

His genocidal bag of financial weapons of mass destruction.

Wed, 09/21/2011 - 07:56 | 1691675 Id fight Gandhi
Id fight Gandhi's picture

Six demon bag

Wed, 09/21/2011 - 08:53 | 1691864 Yamaha
Yamaha's picture

Empty nut sack!

Wed, 09/21/2011 - 07:58 | 1691679 Id fight Gandhi
Id fight Gandhi's picture

Operation twist still sounds like some kinky nipple twister

Wed, 09/21/2011 - 08:25 | 1691777 Implicit simplicit
Implicit simplicit's picture

Chubby checked into the clinic

the naton's citizens more cynics

 healthy heart rates not on the list

just raising rates with operation twist

systems broken in the fat man land

 exorcise and work, they don't understand 

 

Wed, 09/21/2011 - 08:00 | 1691685 TradingJoe
TradingJoe's picture

Yeah, He Who Can Print, will announce an ABYSSmalBag!

Wed, 09/21/2011 - 08:02 | 1691688 Smiddywesson
Smiddywesson's picture

Pandora's box of tricks

 

Wed, 09/21/2011 - 08:09 | 1691702 fdisk
fdisk's picture

Gold diving everyday at the same time like clockworks.

Ones JP Morgan manipulators get to their computers in 8 AM Look at it..

Wed, 09/21/2011 - 08:07 | 1691703 Moneyswirth
Moneyswirth's picture

Operation Twist....ah yes.  The shell game continues.

Wed, 09/21/2011 - 08:13 | 1691719 motley
motley's picture

FOMC, what an oxymoron.  It should instead be FMMC (Federal Manipulated Market Commitee).

Wed, 09/21/2011 - 09:58 | 1692093 MichaelG
MichaelG's picture

Fraudulent Openly Manipulative Criminals.

Wed, 09/21/2011 - 08:15 | 1691732 1835jackson
1835jackson's picture

I think the prudent, academic will do nothing. He wants the markets to crash so he can be on the cover of Time magazine again. That bearded bastard.

Wed, 09/21/2011 - 08:24 | 1691773 msmith
msmith's picture

Bernanke speaks today.  Early action sees EURUSD making a move lower.  A bearish trend channel has been formed with downside price action  http://bit.ly/pe7pTO.  This should impact equities.

Wed, 09/21/2011 - 08:50 | 1691853 msmith
msmith's picture

Bernanke day.  The USD is showing strength across the board.  This should negatively impact equities.  The AUDUSD should have the most downside movement in a risk off environment. bit.ly/ruzDh2

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