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Algos are going to rule the day
The good news is that by changing how GDP is calculated that it went up, and it went up looking backwards and going forward. So basically everything is much better now. And the really good news is that the economy has been doing much better over the last few years than anybody thought. So everybody can relax now. They figured out how to fix the economy. It was never broken. You just need better numbers. Like in China. So inflation doesn't include energy and food (two things I never use) and GDP now includes intellectual property so when kids post on Facebook our economy is growing.
So, this slingshot jump in silver means no taper?
What the hell happened, I looked at cnbc a couple hours ago and silver was down 30 some cents, now it's up 70 some, a dollar swing in a few hours is wild.:flail:
Bernanke’s last meeting as the head of the Federal Reserve was on Wednesday. He will be handing over the reins to the ultra-Dove, Janet Yellen. As anticipated by the market, Bernanke did not go quietly.
The announcement was made that the FED plans to further cut its bond purchasing program by another $10 billion a month! It would effectively bring down FED bond purchases to $65 billion per month starting in February. A number that is still incredibly high.
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One word can sum up the press release by the FOMC today: " BORING".
It pretty much said the same thing as last month's statement with the exception that the Fed cut another $10 billion off the bond buying. That however seemed to be generally expected. In effect, the Fed has just repeated that it is on track to end the QE program this year but will continue to monitor the data like the rest of us. They seemed to put the blame on the slow growth in Q1 squarely on the back of the severely cold weather. We shall see what subsequent data yields. ...
They seemed to put the blame on the slow growth in Q1 squarely on the back of the severely cold weather.
.. . Fed's new interest rate forecasts imply slightly more aggressive credit tightening plans taking shape in the next two years than previously thought. ...
... Gold, Treasuries, and Stocks are surging after the release of the FOMC minutes suggested The Fed will keep rates lower longer. The USDollar is dumping - just as The Fed suggested it was worried about a strong dollar. ...
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Wednesday's meeting of the rate-setting Federal Open Market Committee will bring an assortment of moves to chew on. It will be as much about the current rate increase as it will be about what the Fed plans ahead and where it sees the economy heading.
Here's a quick look at the multiple variables that will play into the outcome:
Rates
Particularly in light of Tuesday's softer-than-expected consumer price index inflation report, it would be a shock if the FOMC does anything other than raises the fed funds rate a half point, taking the overnight borrowing benchmark to a targeted range of 4.25%-4.5%, the highest level in 15 years.
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Communications
Behind that unanimous or near-unanimous vote on rates will be a vigorous debate on where monetary policy should go from here.
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The 'dot plot' and the 'terminal rate'
That "terminal rate" of which Masotti spoke references the expected end point for the Fed and its current rate-hiking cycle.
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Powell presser
Finally, Powell will take the stage at 2:30 p.m. ET for 45 minutes or so to handle questions from the press.
In the past few meetings, the chair has used the session to buttress the Fed's inflation-fighting credentials, vowing rate hikes until prices are firmly brought back to stable ground.
The market hasn't always believed him.
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"It works -- until the day it doesn't work." <-- Unca Walt's Maxim #69Ah ok..I get it...the Fed isn't going to stop QE till maybe the end of 2014 and all is well.
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Gold and Silver take yet another dump! :doodoo:
Oh well..nothing to see here!
-Q
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