With respect to quantitative easing, the FOMC decided to sit on their
hands and let the purchase plan of $1.25 trillion MBS, agency debt of
$200b and longer term treasuries of $300b stand as is and will continue
the programs over the next few months. As a result, bond yields have
busted out to the upside and the 10 yr yield is at the highest level
since late Nov. The Battle Royale b/w Big Ben and the Mr. Market has
been taken to a new level. The text on the economy acknowledged the
slowing pace of deterioration as household spending has shown signs of
stabilizing and the outlook has somewhat improved from the March
timeframe but “economic activity is likely to remain weak for a time.”
The talk on inflation was about identical to the March statement in that
they expect inflation to persist for a time “below rates that best
foster economic growth and price stability in the longer term” in
contrast to recent market messages.

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Although the information contained herein has been obtained from sources
Miller Tabak + Co., LLC believes to be reliable, its accuracy and
completeness cannot be guaranteed. This report is for informational
purposes only and under no circumstances is it to be construed as an
offer to sell, or a solicitation to buy, any security. At various times
we may have positions in and effect transactions in securities referred
to herein. Any recommendation contained in this report may not be
appropriate for all investors. Trading options is not suitable for all
investors and involves risk of loss. Although the information contained
in the subject report (not including disclosures contained herein) has
been obtained from sources we believe to be reliable, the accuracy and
completeness of such information and the opinions expressed herein
cannot be guaranteed. An options disclosure document may be obtained
from Mr. Jay Stenberg, Miller Tabak + Co., LLC., 331 Madison Avenue, New
York, NY 10017. Additional information is available upon request.

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