Kids want all those sweets when they walk into a candy store and wallstreet still wants all that QE and trillions of dollars!
As soon as the minutes were released and wallstreet finds out that BUBBLE ben bernanke and friends are less likely to push another round of stimulus the market dips. What does that tell you, it tells you that this market is only pushing higher because of these cheap liquidity injections by BUBBLE ben bernanke, the market is worthless without it. What they can do is push stocks down 20-30% and hope for more liquidity and QE by BUBBLE ben bernanke because thats the only thing this market knows.
Fed Appears Less Keen On Further Easing: Minutes
Reuters | April 03, 2012 | 02:10 PM EDT
Federal Reserve policymakers appear less keen to launch a fresh round of monetary stimulus as the U.S. economy improves, according to minutes for the central bank's March meeting.
The Fed policymakers noted recent signs of slightly stronger growth but remained cautious about a broad pick up in U.S. economic activity, focusing heavily on a still elevated jobless rate.
However, the minutes suggest the appetite for another dose of quantitative easing, so-called QE3, has waned significantly.
Following the minutes release, U.S. stocks added to losses while U.S. Treasury debt prices turned negative. Meanwhile, the U.S. dollar turned positive versus the euro and gained versus the yen.
The March meeting minutes noted "a couple" of members thought additional stimulus might be needed if the economy loses momentum or inflation remains too low for too long.
That contrasted with a much broader characterization in January, when the minutes cited a few members as seeing a possible need for additional easing before long, and others thinking stimulus might be required if economic conditions worsened.
Still, the Fed remained sober about U.S. economic prospects.
Members "generally agreed that the economic outlook, while a bit stronger overall, was broadly similar to that at the time of their January meeting," the minutes said.
The Federal Reserve has expanded its balance sheet to nearly $2.9 trillion and is in the midst of the $600 billion "Operation Twist," in which the central bank is selling some of its shorter-dated securities and buying longer maturities in an effort to drive down long-term borrowing rates. Operation Twist is expected to end June 30.
The Fed cut rates to near zero in December 2008. Recent news that hiring has been stronger than expected has led many analysts to project the Fed will have to raise interest rates earlier than the late 2014 date it has indicated.
Last week, Fed Chairman Ben Bernanke said the relatively modest pace of U.S. growth is unlikely to lower the 8.3 percent unemployment rate quickly, and that further stimulative action would remain an option.
On Monday, Dallas Fed President Richard Fisher told CNBC that the economy is well on its way to recovery and not in need of any more quantitative easing measures, including an extension of the ongoing Operation Twist debt-buying measures.
He added that the Fed's recent decision to define a specific long-term inflation target of 2 percent was a landmark.
As soon as the minutes were released and wallstreet finds out that BUBBLE ben bernanke and friends are less likely to push another round of stimulus the market dips. What does that tell you, it tells you that this market is only pushing higher because of these cheap liquidity injections by BUBBLE ben bernanke, the market is worthless without it. What they can do is push stocks down 20-30% and hope for more liquidity and QE by BUBBLE ben bernanke because thats the only thing this market knows.
Fed Appears Less Keen On Further Easing: Minutes
Reuters | April 03, 2012 | 02:10 PM EDT
Federal Reserve policymakers appear less keen to launch a fresh round of monetary stimulus as the U.S. economy improves, according to minutes for the central bank's March meeting.
The Fed policymakers noted recent signs of slightly stronger growth but remained cautious about a broad pick up in U.S. economic activity, focusing heavily on a still elevated jobless rate.
However, the minutes suggest the appetite for another dose of quantitative easing, so-called QE3, has waned significantly.
Following the minutes release, U.S. stocks added to losses while U.S. Treasury debt prices turned negative. Meanwhile, the U.S. dollar turned positive versus the euro and gained versus the yen.
The March meeting minutes noted "a couple" of members thought additional stimulus might be needed if the economy loses momentum or inflation remains too low for too long.
That contrasted with a much broader characterization in January, when the minutes cited a few members as seeing a possible need for additional easing before long, and others thinking stimulus might be required if economic conditions worsened.
Still, the Fed remained sober about U.S. economic prospects.
Members "generally agreed that the economic outlook, while a bit stronger overall, was broadly similar to that at the time of their January meeting," the minutes said.
The Federal Reserve has expanded its balance sheet to nearly $2.9 trillion and is in the midst of the $600 billion "Operation Twist," in which the central bank is selling some of its shorter-dated securities and buying longer maturities in an effort to drive down long-term borrowing rates. Operation Twist is expected to end June 30.
The Fed cut rates to near zero in December 2008. Recent news that hiring has been stronger than expected has led many analysts to project the Fed will have to raise interest rates earlier than the late 2014 date it has indicated.
Last week, Fed Chairman Ben Bernanke said the relatively modest pace of U.S. growth is unlikely to lower the 8.3 percent unemployment rate quickly, and that further stimulative action would remain an option.
On Monday, Dallas Fed President Richard Fisher told CNBC that the economy is well on its way to recovery and not in need of any more quantitative easing measures, including an extension of the ongoing Operation Twist debt-buying measures.
He added that the Fed's recent decision to define a specific long-term inflation target of 2 percent was a landmark.