"Not Patient" Fed Blames Snow For Weakness, Removes Calendar Guidance

With everyone hoping that The Fed says something dovish (because after all stocks are 1% off their highs) there was some disappointment as the weakness was shrugged off as transitory:

  • *FED SAYS WINTER SLOWDOWN PARTLY REFLECTS `TRANSITORY FACTORS'
  • *FED SEES MODERATE GROWTH, JOB GAINS EVEN AFTER 1Q SLOWDOWN

In the end, once again, the dovish Fed provides just enough wealth-creating hope to keep stock dreams alive but knows it has to move sooner rather than later (keeping the "but we think the economy will strengthen" meme alive).

Pre-FOMC: S&P Futs 2099.50, 10Y 2.04%, EUR 1.1175, Gold $1210, Oil $58.85

 

Here is the best, and really only notable part:

Information received since the Federal Open Market Committee met in March suggests that economic growth slowed during the winter months, in part reflecting transitory factors. The pace of job gains moderated, and the unemployment rate remained steady. A range of labor market indicators suggests that underutilization of labor resources was little changed. Growth in household spending declined; households' real incomes rose strongly, partly reflecting earlier declines in energy prices, and consumer sentiment remains high. Business fixed investment softened, the recovery in the housing sector remained slow, and exports declined. Inflation continued to run below the Committee's longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations have remained stable.

So the economy slowed down during a transitory winter... which means that the Fed will only hike from now on in California?  Real income rose strong... due to deflation, and "consumer sentiment remains high" as can be seen in the photo below.

To summarize.

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As Forward Guidance remains a dim and distant bullshit dream...

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By way of interest, since the March FOMC meeting, Oil is up 22%, Gold & Silver up 4.75%, Stocks and credit unchanged, and bonds modestly higher (lower in yield)...

 

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Full Redline below...