Ben the Bartender
Ben the Bartender is working the after hours party as the Fed will keep rates at “exceptionally low levels…for an extended period.” Also with respect to inflation, the commentary is identical to the Sept 23rd meeting which is highly dovish, this even as gold is at a record high, the CRB index is up 8% and the implied inflation rate in the 10 yr TIPS is up almost 30 bps. The 1st paragraph on the economy is very similar to the Sept 23rd meeting but they referred to household spending as “expanding” from “stabilizing” in Sept. The FOMC said they will buy $175b of agency paper in total from $200b previously. Bottom line, the Fed seems solely focused on keeping the yield curve as steep as possible in order to further recapitalize the banking system and also to boost the housing market by trying to keep mortgage rates low. They don’t care about the US$ and thus don’t care about inflation. DOVISH is the word of the day!
Looking out to the April 2010 FOMC meeting, the very dovish Fed statement has reduced the odds of a 25 bps rate hike to 40% from 54% priced in just prior.
November 4th, 2009 at 4:17 pm
Robbing us blind by taking away buying power of the dollar, now worth .04 cents and tanking.
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November 4th, 2009 at 6:58 pm
One more reason to do what every loyal, patriotic American should be doing anyway: buy American.
November 4th, 2009 at 11:55 pm
Every patriotic loyal American should be telling every member of Congress to get the f*ck out of office save for 1 or 2 like Ron “I know the Constitution” Paul. Bernanke should be tried and then hung with the rest of the treasonist morons.
Buy American? Buy America back from the corporations/lobyist. You might want to watch Frontline PBS’s “Warning”. These idiots have no plan for the 600 trillion in derivatives that will blow up, 200 trillion of them are owned by US banks and just a handful of them.