No change to Fed policy


It's nearly a replay of the September meeting, with no change in the $85B per month in asset purchases. While the labor market has "shown improvement," unemployment remains elevated, and fiscal policy is restraining growth.

Full statement.

Comments (9)
  • DeepValueLover
    , contributor
    Comments (11086) | Send Message
     
    No taper this decade.

     

    Taper = interest rate spike = recession = political career risk.

     

    No taper.
    30 Oct 2013, 02:07 PM Reply Like
  • wmateri
    , contributor
    Comments (577) | Send Message
     
    Maybe the Fed is trying to make it's statements irrelevant before deciding to taper. Predictable, therefore uninteresting.
    30 Oct 2013, 02:09 PM Reply Like
  • wmateri
    , contributor
    Comments (577) | Send Message
     
    Boy, that was a short-lived spike of "excitement(?)".
    30 Oct 2013, 02:12 PM Reply Like
  • Sir. Monaco
    , contributor
    Comments (362) | Send Message
     
    no taper and more buying by the fed,

     

    buying the dip in treasuries,
    30 Oct 2013, 02:14 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13224) | Send Message
     
    No bubble? LOL so why do they feel a need to still pump to keep the economy and asset prices up? If there is no bubble then does that mean they should keep pumping until an obvious one appears (which is always too late by that time). It would seem that the Fed is always dead set to create bubbles right up to the crash which prompts them to pump even more to prevent the bubble from popping.

     

    Have they seen the trajectory of stock prices and real estate this year as people fled bonds? It's almost useless to listen to their babble anymore. And it's a complete fallacy that they try to prevent bubbles. If anything the Federal Reserve is the grand architect of almost all the bubbles made in the market since 1980.
    30 Oct 2013, 02:33 PM Reply Like
  • Marco Mazzocco, CFA
    , contributor
    Comments (192) | Send Message
     
    I read the statement, and I thought it had an overall positive tone about the economy. Perhaps the market has built up such a tolerance to QE drugs that it just doesnt have the same effect. The ADP number along with the usual statement should have been enough to push gold, bonds and stocks higher. Who knows how we finish the day, but right now it seems the QE keg is on its last leg. Gonna have to turn it upside down to get the last few beers.
    30 Oct 2013, 02:43 PM Reply Like
  • DMCstrategies
    , contributor
    Comments (68) | Send Message
     
    Why should the markets pop on no policy change. That doesn't make any sense. Nobody expected a taper at this meeting.

     

    You say "the usual statement should have been enough to push gold, bonds and stocks higher."

     

    I don't really see any reason for that to be the case, no one was expecting anything else.
    30 Oct 2013, 03:00 PM Reply Like
  • Marco Mazzocco, CFA
    , contributor
    Comments (192) | Send Message
     
    Look at the intraday charts of the last few fed announcements and payroll numbers...all 3 (Gold, Treasuries, S&P) ripped on the premise that QE was here to stay as a reult of weak economic news. Today didn't go that way. I'm not saying one is right or wrong, but I think a correction in risky assets is a step in the right direction ultimately.
    30 Oct 2013, 03:50 PM Reply Like
  • Valueplay98
    , contributor
    Comments (582) | Send Message
     
    Is this the first time the market has gone south after a statement ? (in awhile)
    30 Oct 2013, 03:32 PM Reply Like
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