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The UST withdraw of $200b of money base should have a far bigger effect in the financial system than the discount hike plus it means much more as that program is effectively controlled by the Fed, the action and asset sales are similar, so one can argue some kind of exit already started. Yet...

Yes, since the SFP was created to help the Fed I seriously doubt Bernanke was not involved in this decision

Hatzius questions for Bernanke http://www.zerohedge.com/article/six-questions-ben-bernanke "That said, Chairman Bernanke would undoubtedly stress, as he and others did with respect to last week’s discount rate increase, that ramping up the SFP to $200bn from $5bn currently is not a...

It appears that the fed wants to sterelize the rest of its MBS purchases and is using the UST, saying 'we decided to stop asset purchases' would be a bomb in the markets. Then the UST plays ball and claims the program is coming back because the debt ceilling was raised, right, but the program...

The purpose of the UST SFP was always monetary policy related, given that Bernanke and Geithner are good friends, its likely Bernanke 'approved' a $200b withdraw of monetary base from the system in order calm down exit fears http://www.ustreas.gov/press/releases/tg560.htm This is hawkish...

"If we were to follow our standard approach of selling securities to raise interest rates, we would have to sell off many hundreds of billions of dollars of securities to reduce the supply of reserves enough to have any chance of pushing rates higher." - Fed's Yellen This is a good point by...

As I understand the Fed's bloated balance sheet presents a problem only to the extend that a banking lending boom happens leading to a rapid growth in M2, as opposed to the informal target of 5% M2 growth(3% GDP growth plus 2% in inflation) This is not happening currently, and it looks like it...

A chart from hussman showing the 'shadow' inventory of labor http://www.hussmanfunds.com/wmc/wmc100222d.gif

The bank of Tim Geithner, short-term USTs bought from Treasury Direct. Or CDs and savings accounts for less than $250,000

gez, Tiger is a pussy, the guy will leave golf for 2010 just because he did something that lots(if not most) american does I couldn't care less about the cheating, I totally lost my respect for him now that he chickened out to all the media pressure

Gross Fed's outlook http://www.cnbc.com/id/15840232?video=1417956420&play=1 he agrees with that idea that yesterday's statement(actually the day before yesterday is more accurate) renewed the 'extended period' pledge

The core CPI collapse might be starting, fell in Jan and "The drop in the core CPI was due to a 0.5% drop in shelter costs, the largest decline since late 1982. Hotel and motel rates plunged 2.1%. Residential rents were unchanged. Homeownership equivalent rents - the cost of owning a home - fell...

IMO whatever implication that can be derived from the timing of this move, (feb 17 instead of a month from now)is offset by the Fed's Board statement that the outlook for monetary policy did not change(effectively renewing 'extended' period as of Feb 17, the day of the vote, all board menbers...

The move was hinted twice. The chairman and the fomc minutes both announced it, if the hikes comes 1 month from now it makes little difference to the market($14b and $15b outstanding in the discount and TAF) Whatever implication that can be derived from the timing of this move is immediatly...

FOMC's Bullard: Fed Bank of St. Louis President James Bullard yesterday said expectations for an interest-rate increase were exaggerated. “The idea that’s in markets that there’s a high probability that we’ll raise rates later this year is overblown,” Bullard said in response to...

More like 'Bolsa do Homem-ouro'

Well, I'd agree that the Fed timed the move according to market conditions It appears the the board meets every monday http://www.federalreserve.gov/boarddocs/meetings/ But if the market was still tanking hard I doubt they would hike. They caught a little rally and this might have tipped...

The Fed chairman and the NY Fed president would say thats highly unlikely

dude, nobody uses the discount window :)

We will see what libor does(if it does anything at all) and how much GE goes down. However to take more risk I believe I will have to wait for the bernanke testimony, in particular the Q&A