FOMC: QE Continues at $85 Billion a Month for Indefinite Future! Metals Smash in Progress!

  • Fed leaves QE at $85 billion/month
  • Inflation target 2%
  • Gold & silver raid in progress!2:02 PM Update:  Metals retrace entire algo smash!

 

Full March FOMC Statement is below:


2013 Silver Eagles As Low As $2.59 Over Spot at SDBullion!

2pm also smash lasting nano-seconds:

nysilver

nygold

For immediate release

Information received since the Federal Open Market Committee met in January suggests a return to moderate economic growth following a pause late last year.  Labor market conditions have shown signs of improvement in recent months but the unemployment rate remains elevated.  Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy has become somewhat more restrictive.  Inflation has been running somewhat below the Committee’s longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices.  Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.  The Committee expects that, with appropriate policy accommodation, economic growth will proceed at a moderate pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate.  The Committee continues to see downside risks to the economic outlook.  The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective.

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.  The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.  Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.

The Committee will closely monitor incoming information on economic and financial developments in coming months.  The Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability.  In determining the size, pace, and composition of its asset purchases, the Committee will continue to take appropriate account of the likely efficacy and costs of such purchases as well as the extent of progress toward its economic objectives.

To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.  In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored.  In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments.  When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Charles L. Evans; Jerome H. Powell; Sarah Bloom Raskin; Eric S. Rosengren; Jeremy C. Stein; Daniel K. Tarullo; and Janet L. Yellen.  Voting against the action was Esther L. George, who was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long-term inflation expectations.

SD Bullion

Comments

  1. Still going to do QE and Silver & Gold are getting hit right now. They are buying debt and more debt..Everyone who knows something about the markets knows. Benanke does not inject 85 billion a month into the MBS and purchasing bullshit bonds. The market would crash. Ally Velshi is just praising this shit. 

    • Just perverse. Everything is a lie. Let’s not forget that since the official announcement and enactment of QE4(ever) gold and silver have been knocked down 10% anyways. And they try to smack them down more. It is literally party like its 1984
       
       

  2. BFY (Big Fing Yawn)!

  3. “The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective.”
    What F’ing planet would that be on where it is 2%?
    So they are going to reduce inflation by 8% to get it to around 2%. (FFS Bite my shiny silver ass)
    Sick of the F’ing Gov’t constant BS lies and more lies and the MSM (Pravda) Govt’s misinformation propaganda machine.

  4. And all pay raises are calculated
    by the inflation rate. Go ahead rob me!

  5. Please do not bother reading so-called FOMC material:
     
    “The last duty of a central banker is to tell the public the truth.”
    –Former Federal Reserve Board Vice Chairman Alan Blinder

  6. Right…”algos” responsible for the flash crash which coincided precisely with the moment of greatest uncertainty, 2:02pm, after the FOMC release. Right…probably not be coordinated human planning to “manage” price discovery at precisely that time. Right…

  7. Given his appropriate name, Alan Blinder’s quote reveals what is perhaps the truer axiom of central bankers: “The first duty of the central banker is to profitably distort the truth, particularly and most especially when dealing with the public.”
     

  8. SOSDD

  9. At the rate the Fed is buying up junk mortgages and junk treasuries it won’t be long before it’s as insolvent as the Cyprus Banks.   Once it gets there I wonder if we’ll see our checking accounts pillaged?  The Fed is about as American  an institution as the IMF represents Uranus.
    Sorry, I forgot.
    Our private accounts are already being invaded by inflation and pillaged, pilfered and purloined by sticky fingered bankers.

  10. I kind of like the strategy of the longs. Push & force a reaction from the shorts then retreat. The shorts need to outspend them 10 to 1 to hold the line. Do this repeatedly and then release the pressure and buy in big @ it’s lowest price and then hold. The longs are using the shorts deep, not for profit pockets to increase their positions.

  11. Q E will not stop until TPTB are ready pull the plug on the worlds economy and crash their system. Their stuck in a loop and looking for an exit that most likely doesn’t exist.

  12. Even with all of these amount of US dollars that printed, it is really amazing that the prices of commodities are still really that low. Although recently, the Canadian dollar got devalued compare to the American dollar but my local coin shops base their prices on US precious metals’ prices which save Canadians some dollars.

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