Bernanke has acquiesced and is now the 4th branch of the status quo- and all is well in the world:
- *FED TO KEEP POLICY STIMULATIVE FOR `CONSIDERABLE TIME'
- *FED WILL ADD TO PURCHASES IF LABOR MARKET DOESN'T IMPROVE
- *FED DOES NOT SAY WHEN MBS PURCHASE PROGRAM TO END
- *FED TO BUY $40B MBS MONTHLY, CONTINUE `OPERATION TWIST'
- *FED TO BUY MBS, EXTENDS ZERO-RATE POLICY INTO 2015
To summarize:
- The good news: The Fed's NEWER, OPEN-ENDED and NEVERENDING QE is bigger, longer, and has a Retina display (however its battery life is far shorter).
- The bad news: The Fed has now confirmed it is merely a sad, political, self-frontrunning caricature of what a central bank should be.
Pre-FOMC:
S&P 500 Cash 1437.9
S&P 500 Futures 1437
Dow 13345.43
10Y 1.7247
5Y 0.6522
30Y 2.8815
EUR 1.2895
MBS Spread 0.57993
Gold 1724.35
Silver 32.77
WTI Oil 97.23
USD Index 79.70237
Apple 676.91
Full statement link [3].
Full redline comparison to the August statement below: