Wednesday, June 19, 2013

No Change in Fed Bond Buying Program



Here is the full statement of the Federal Reserve's monetary policy setting committee, the FOMC:
  Information received since the Federal Open Market Committee met in May suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth. Partly reflecting transitory influences, inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic growth will proceed at a moderate pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate. The Committee sees the downside risks to the outlook for the economy and the labor market as having diminished since the fall. The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective.

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.

The Committee will closely monitor incoming information on economic and financial developments in coming months. The Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability. The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes. In determining the size, pace, and composition of its asset purchases, the Committee will continue to take appropriate account of the likely efficacy and costs of such purchases as well as the extent of progress toward its economic objectives.

To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored. In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Jerome H. Powell; Sarah Bloom Raskin; Eric S. Rosengren; Jeremy C. Stein; Daniel K. Tarullo; and Janet L. Yellen. Voting against the action was James Bullard, who believed that the Committee should signal more strongly its willingness to defend its inflation goal in light of recent low inflation readings, and Esther L. George, who was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long-term inflation expectations.


10-year Treasury yield surges 8 basis points to 2.271% after Fed statement. US stock markets at session lows.


  1. (now we will get it in right) sorry i drifted off. what where they talking about again?

    1. Heath sorry that you drited off, as you missed one of the greatest economic events of today's times.

      The bond vigilanges called the Interest Rate on the US Ten Year Note, ^TNX, strongly higher to 2.31%, and steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as is seen in the Steepner ETF, STPP, Steepening. Ultra High Yield Junk Bonds, UJB, and Junk Bonds, JNK, led Aggregate Credit, AGG, strongly lower. Emerging Market Bonds, EMB, International Corporate Bonds PICB, International Treasury Bonds, BWX, traded lower on falling currencies.

      Currency traders successfully sold individual currencies short; these included the Brazilian Real, BZF, the Australian Dollar, FXA, the Japanese Yen, FXY, the Swiss Franc, FXF, the British Pound Sterling, FXB, the Euro, FXE, the Canadian Dollar, FXC, and Emerging MarketCurrencies, CEW, causing the US Dollar, $USD, to rise strongly to resistance as seen in the chart of UUP.

      World Stocks, VT, led by the the BRICS, EEB, Emerging Markets, EEM, Nation Investment, EFA, and Small Cap Nation Investment, IFSM, traded strongly lower.

      The difference between May 24, 2013, and today June 19, 2013, is that credit, currencies, and money died when the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.01%, and today, all fiat investments were put in Liberalism’s coffin, and the age of investment choice is now gone forever.

      Today, June 19, 2013, Jesus Christ operating at the helm of the economy of God, Ephesians, 1:10, pivoted the world out of Liberalism and into Authoritarianism. The trade higher in the Interest Rate on the US Ten Year Note, $TNX, to 2.31%, terminated the Banker Regime and its credit, which began as the Creature from Jekyll Island in 1913 with the Federal Reserve Act, and fully actuated the Beast Regime of Revelation 13:1-4, with its manifest as regional governance in all of the world’s ten regions and totalitarian collectivism and debt servitude in each of the world’s seven institutions, instituting the age of diktat.

      Jesus Christ completed a large part of the Ron Paul Agenda, He terminated the Fed, he slayed it at the Ben Bernanke news conference today; something much more terrible and terrifying is here now, as the Beast Regime has “the feet of a bear, the mouth of lion, and the coat of a leopard”. With the rise in the Interest Rate on the US Treasury Note to 2.31%, Jesus Christ has birthed the Ultimate Predator. Listen, and understand. That Predator is out there. It can't be bargained with. It can't be reasoned with. It doesn't feel pity, or remorse, or fear. And it absolutely will not stop, ever, until all existing economic and political life is no more.