No Taper, QEternity Continues at $85 Billion a Month

  • Fed continues monthly asset purchases of $85 billion/month
  • ZIRP to continue as long as the unemployment rate remains above 6-1/2 percent
  • Fed stands ready to INCREASE or decrease QE
  • Gold and silver waterfall-smash in progress

Full FOMC statement is below:

Trivium 5 oz 2

 

Silver monkey hammered on no taper:

 

Gold:

 

Full FOMC Statement:

For immediate release

Information received since the Federal Open Market Committee met in September generally suggests that economic activity has continued to expand at a moderate pace. Indicators of labor market conditions have shown some further improvement, but the unemployment rate remains elevated. Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth. Apart from fluctuations due to changes in energy prices, inflation has been running below the Committee’s longer-run objective, but 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 pick up from its recent pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate. The Committee sees the downside risks to the outlook for the economy and the labor market as having diminished, on net, since last fall. The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, but it anticipates that inflation will move back toward its objective over the medium term.

Taking into account the extent of federal fiscal retrenchment over the past year, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy. However, the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases. Accordingly, 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, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee’s dual mandate.

The Committee will closely monitor incoming information on economic and financial developments in coming months and 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 judging when to moderate the pace of asset purchases, the Committee will, at its coming meetings, assess whether incoming information continues to support the Committee’s expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective. Asset purchases are not on a preset course, and the Committee’s decisions about their pace will remain contingent on the Committee’s economic outlook as well as its assessment of the likely efficacy and costs of such purchases.

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view 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; Charles L. Evans; Jerome H. Powell; 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.

eagles

Comments

  1. Talk about a manipulated market LMAO, they announce no taper, they will continue to print 85 billion a month and silver tanks .50c in a second?  Just crazyness.

    • Yep. It is almost comical to think that the printing continues and the dollar gains strength. I bet the east is really laughing as they cash in on cheap physical. We are doomed.

  2. Wait a second, it was hyped that QE could increase and prices went up, come to find out it will remain the same and price went right back down to where it was. Lets be clear where the manipulation is coming from….Blogs.  Once you realize that you can start investing in real assets, silvertards have become a glorified daytraders. 

    • Wait a second? Indeed jiggy. So where are the posters that tell us that all the panic buying and large orders will take out all the stops to the upside as gold and silver “rocket higher” ? Most of the real evidence we can find contradicts that thesis completely. In the last 15 years you would be hard pressed to find gold ever rising more than 1-2% in one day. Adrian Douglas and GATA both covered this topic years ago (plotting the London AM and PM fixes), and nothing has really changed since then.
       
      Chris Powell’s recent speech is loaded with facts on gold and silver suppression. Start there you doubters and MSM shills. Then come back and try to convince someone with a credible argument.
       
      http://www.gata.org/node/13185

    • So Jiggy, how do you explain the waterfall in gold after the announcement? Gold didn’t spike higher prior to the announcement the way that silver did. In fact, it followed the same trading pattern as it has all week. Then it fell like a rock. Blogs again? Come up with a better one than that, and just maybe you will be taken seriously.

    • really?  how do I explain the fall….. I dont know, maybe disappointment in the hype? Remember that these character mentioned on a daily basis like Mr Douglas own a mass amount of mining shares and sit on the board of many mining companies. There bonuses are and market share profitability are directly impacted by physical purchases. I know for fact these types of blogs are run by them and their organizations. Just think to yourself why would Bay of Pigs defend a sinking ship for almost a year now. Why are the defenders the only members that take the time to add avatars. Why do IP logs show the same IP address for multiple members. Just some things to think about…

    • @jiggysmb
      Im fairly certain Adrian Douglas owns zero mining shares…or anything for that matter and sits on the board of zero mining companies…considering he passed away a year ago.

      Next time do some research before you come trolling.  lol

      -Doc

    • Jiggy, I was gonna respond further (since you failed to answer my question using the same “logic” that you used to explain the post-announcement silver plunge), but The Doc pretty much summed it up….. Troll.

    • Defend a sinking ship? WTF are you talking about? Multiple members? I’ve had the same name and avatar for 5 or 6 years now you jack ass. That would be here, ZH, Mish’s, Turd’s and Rick Ackerman’s, among other sites. You are really grasping at straws now jiggy. Is that all you have? Making up absurd, stupid and ridiculous comments like this?
       

       

    • Doc,
       
      Apparently the mining companies that Adrian Douglas sits on merely holds a seance during board meetings to get his input.

    • Wow you guys continue to amaze me. You hang on some guys words like he speaks truth but dont know anything about him. Douglas is the biggest investor in Samex mining Corp. You can always find hope when you want to but the small amount of effort required to look a little deeper is always missing. A sure sign you are trying to make you investment work in your mind. Many other of the daily gurus spoken about here all own mining companies, their sole purpose is to keep someone buying their mines product. Stock hyping is illegal and this should be too.
      In some circlies douglas says avoid junior mining companies and buy physical, just like these blogs preach, but in reality he is buying juniors and hyping them. Like I said, silvertards are the new daytraders ofthe 90s which is in fact the daily manipulation you all see. I know plenty of guys making huge sums of the paper market, so you all buy and hold out for that one day we may see some jump up, meanwhile the big boys are depending on you to keep their share prices up and at the same time skimming 10% a week off the paper market.

    • Whoa I take a few days off from the forums and all hell breaks loose. What do you mean all Gurus own Mining Stocks hell this guy don’t and I know him personally. LMAO Keep Stacking
       

    • jiggy, Can you not read? Adrian Douglas is dead. He doesn’t own any shares. 
       
      Amazed? Yes, I am. That anyone could be this incredibly stupid.

    • Paid disinformation shill bot, not even a person probably

    • Sorry for not explaining the estate, but I figured you all would have known that here. His estate is majorly made up of mining shares. In fact as soon as he bought the mining shares in late 2010- early 2011, he did an interview calling for $57,000 ounce gold, silver to be higher and he saw no pull back in prices. I know the daily commentators have a short memory, so let me refresh you. After being called out on his hyping in March we saw the largest pull back yet. Most junior miners got dumped by the big investors but large sums of money were spent creating blogs and hype to keep buyers in both physical and paper. Spin it as you wish, call the members that speak truth trolls, shills, whatever, but come down from your high horses and realize silver may not have been the best place to put your money. I have sold many domain names to mining companies that now use the sites for strictly hyping and have no reference to the mine but all heavily push the product through brokers. I have also spoke in the past of how I know someone that took part in that side of the game and everything I have said over 3 years has been or become true, so name calling just shows your level of understanding in this game.

    • Pretty amazing how off topic you get and never answer the questions put to you. Seems to be standard operating procedure for you. There are a couple other posters here who use the same techniques.
       
      I bring up a factually based speech by Chris Powell on gold manipulation and you end up with Adrian Douglas estate issues and guys hyping junior silver miners. Give your head a shake jiggy.

  3. These non-event events seem to be a favorite now of the manipulators to shit on the PM’s with an imagined semblance of reason.
    I’m sure we will find out soon just how many thousand contracts got dumped into the market in the shortest amount of time to ensure that the sellers get the worst possible price. Don’t all sellers do this jiggy??? Ya momo.

  4. That would be 40,000 contracts, 200 million paper ounces, from 2:00 to 2:30.
    Gold took it on the chin- 78,450 in the same half hour! 7.8 million ounces, that’s a lot of paper.
    Coulda been worse.  The dollar index rose on the news, from 79.5 to 79.9.  Woweee, it’s on fire.

  5. The PM gains this morning were a setup! Wonder who got robbed? The FOMC always ends in a smack down.

  6. word for the day 
      dont screw with the Beard!

  7. I love how they mention the 6.5% unemployment rate. They have been manipulating that DOWN through people falling out of the workforce. There isn’t a chance that is a true catalyst for taper because the employment recovery is an illusion.

  8. Not defending jiggy here but he does bring up a point, in my mind anyway, about the miners. Have you ever looked at those prospectus they send out? Sheesh, ever see how many shares of their own company stock they have awarded themselves? enormous, almost like penny stock volume give-aways. It is a wonder some of these stocks can be worth anything with the volumes they themselves hold. disclosure: I hold some mining stocks but will dump at opportunity….

    • Why would a company hold most of its own shares(or the owner) gee to keep control over THEIR own company and not give it to some hack investor that will strip them of assets and sell the remains for pennies on the dollar?

  9. “Why Yould Bay of Pigs defend a sinking ship for almost a year now. Why are the defenders the only members that take the time to add avatars”
     
    Ok bud now you’ve come to the point in your rhetoric where the phrase “psychotic break” begins to mean something for you. If placing an avatar in ones profile signifies defense of anything no one let me in on it, and no, I don’t own mining shares or get paid to point out the merits of owning precious metals but I’m not above starting  ;-)

  10. @Canadian Dirtlump
    “Apparently the mining companies that Adrian Douglas sits on merely holds a seance during board meetings to get his input”
    Yes I admit it… I laughed out loud at the seance reference…what ?… tell me it wasn’t funny. Good one CD

  11. There are three numbers that every American should be paying attention to and they are (1) the national deficit ($17 trillion dollars), (2) the unfunded liabilities debt ($238 trillion dollars), and (3) the derivatives/futures debt (one quadrillion dollars which is 16 times the entire wealth of the planet.
     
    This is all you need to know…Paper or Plata?

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